substantially. We document this fact by comparing an easy-to-grasp expectations-based policy, unconventional fiscal policy, with a … consumption via managing inflation expectations based on the Euler equation. Unconventional fiscal policy uses trivial … announcements of future consumer-price increases to boost inflation expectations and consumption expenditure on impact. Instead …

The adaptive learning approach has been fruitfully employed to model the formation of aggregate expectations at the … macroeconomic level, as an alternative to rational expectations. This paper uses adaptive learning to understand, instead, the … formation of expectations at the micro-level, by focusing on individual expectations and, in particular, trying to account for …

macroeconomic variables and their corresponding expectations. In the empirical analysis, we exploit direct data on expectations from … surveys. To explain the joint evolution of realized variables and expectations, we adopt a DSGE-VAR approach, which allows us … failure of New Keynesian models under the rational expectations hypothesis to account for the dynamic interactions between …

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 …

This paper estimates a New Keynesian model extended to include heterogeneous expectations, to revisit the evidence that … 1980s. Different shares of consumers and firms form either rational expectations, or adaptive and extrapolative … expectations. The inclusion of heterogeneous expectations alters the determinacy properties of the model compared to the …

This paper examines the impact of carbon pricing on firms' inflation expectations and its implications for central … French firm-level survey data. A change in carbon price increases firms' inflation expectations as well as their own expected … and realized price growth. The effect on price expectations is more persistent than on actual price growth, resulting in …

We provide survey evidence on how households’ inflation expectations matter for their spending highlighting a … implies that managing aggregate demand through households’ inflation expectations is limited and can run out of ammunition. …

We estimate a Heterogeneous-Agent New Keynesian model with sticky household expectations that matches existing …

Using a new consumer survey dataset, we show that macroeconomic preferences affect expectations and economic decisions … through different channels. While household expectations are on average inversely related to preferences, households with the … same inflation or interest rate expectations can differently assess whether the level of the corresponding variable is …