This paper examines how monetary expansion causes asset bubbles. When there is no monetary expansion, a bubbly asset is …

spikes in inflation may become ‘baked in’ to inflation expectations, but only among those with the most positive subjective …

effect of the coronavirus crisis on household income and retirement wealth, households’ expectations about the recovery, and …, which are stronger for younger households and those in lower income and wealth quintiles. Expectations about household … upward adjustments in expectations about household debt, desired working hours, and retirement age. Finally, respondents …

How do households adjust their spending behavior in response to changes in home price expectations? We conduct a field … experiment with a sample of Americans that links survey data on home price expectations to actual spending behaviour as measured … in a rich home-scanner dataset. In the experiment we exogenously vary households' home price expectations by providing …

Do survey data on inflation expectations contain useful information for estimating macroeconomic models? I address this … when solved under the assumptions of Rational Expectations and learning. This information serves as an additional moment … inflation expectations. -- survey data ; learning models ; inflation expectations ; Bayesian econometrics …

consumers, with the aim of both guiding and anchoring their inflation expectations. For the expectations channel of monetary … policy to work as intended, central banks need a thorough understanding of the formation process of expectations by the … general public and of the relationship between expectations and economic choices. This warrants reliable and detailed data on …

structure, forecasts, and adaptive learning rules affect the conditions for convergence of adaptive learning towards rational … expectations equilibrium. Results are applied to the market model with supply lags and a New Keynesian model of interest rate …

intertemporal trade-off, not present under rational expectations: it is optimal to forego stabilizing the economy in the present in … actually has rational expectations is much smaller than if the central bank mistakenly assumes rational expectations when in … fact agents are learning. -- optimal monetary policy ; learning ; rational expectations …