This paper documents five facts about inflation expectations in the euro area. First, individual inflation forecasts … current inflation is high, and declines when inflation is low, consistent with a zero lower bound of expectations. Fourth … average expectations (and of actual inflation) to shocks became more muted post-GFC in the euro area, but not in the U.S …

We propose a new approach to test the full-information rational expectations hypothesis which can identify whether … document evidence of state-dependence in the expectations formation process …

.e. expectations about future price developments. The argument is, however, often indirect: speculation is treated as a deviation from … of the real house price increase. We also construct a model-based measure of exogenous changes in price expectations and … show that this measure leads a survey-based measure of changes in house price expectations. Our main identification scheme …