We implement a survey-based randomized information treatment that generates independent variation in the inflation … expectations and the uncertainty about future inflation of European households. This variation allows us to assess how both first … and second moments of inflation expectations separately affect subsequent household decisions. We document several key …

We study the link between expected inflation and wages using novel panel data from German firms and employees. We find … that pass-through - the percentage point change in wage growth given a one percentage point change in expected inflation … extensive margin, expected inflation has little effect on additional wage negotiations. …

account middle-inflation overestimate the impact of financial expectations. …

with rational expectations. We extend a standard New Keynesian model with a zero-lower bound on inflation expectations …

inflation (sunspot shocks) affecting nominal wage bargaining. Since the estimated parameters fall near the locus of Hopf … bifurcations, country-specific expected inflation shocks can replicate the strong persistence and heterogeneity observed in …, choose to consume their current income. -- Unemployment fluctuations ; sunspots equilibria ; expected inflation ; wage …

dependent data and allowing for first-step estimation of the propensity score. -- Monetary policy ; propensity score …

variable (IV) estimation. We show that tests for treatment effects, selection bias, and treatment effect heterogeneity are …