update expectations by Bayesian learning based on observations from their own lifetimes. In this model, the stock price … exhibits stochastic fluctuations around the rational expectations equilibrium. This heterogeneous-agents economy can be …

A central tenet of inflation targeting is that establishing and maintaining well-anchored inflation expectations are … public forms expectations and policymakers must formulate and implement monetary policy. Using an estimated model of the U ….S. economy, we show that monetary policy rules that would perform well under the assumption of rational expectations can perform …

This paper studies consumers' inflation expectations using micro-level data from the Surveys of Consumers conducted by … expectations that income will go down in the future have a stronger upward bias in their expectations than other households …

groups in the dispersion of household-specific rates of inflation. Using survey data on inflation expectations, I show that … of the expectations formation process of households …

To better understand inflation expectations, we examine newly available data on U.S. households' inflation perceptions … expectations. The central tendencies of the responses for perceived inflation over the past five to ten years are similar to those … change tend to revise their expectations in the same direction; and perceptions and expectations vary similarly by gender and …

inflation and deflationary biases in inflation expectations. In a model with an occasionally binding zero-lower-bound constraint … of this model using unique individual-level inflation expectations data across nine countries that allow for a direct … identification of these biases. Both inflation and deflationary biases are present (and sizable) in inflation expectations of these …

Using a new consumer survey dataset, we document a new dimension of heterogeneity in inflation expectations that has … same inflation expectations differently assess whether the level of expected inflation and of nominal interest rates is … appropriate or too high/too low. The `hidden heterogeneity' in expectations stemming from these opinions is related to demographic …