Prominent economic theories have emphasized the role of commonly held perceptions and expectations for determining …

We use a unique design feature of a survey of Italian firms to study the causal effect of inflation expectations on … generates exogenous variation in inflation expectations. We find that higher inflation expectations on the part of firms leads … recent inflation (or the European Central Bank's inflation target) whereas other firms are not. This information treatment …

Using a new survey of firms' inflation expectations in France, we provide novel evidence about the measurement and … formation of inflation expectations on the part of firms. First, French firms report inflation expectations with a smaller, but … the wording of questions matters for the measurement of firms' inflation expectations. Third, we document whether and how …

We propose and estimate a model where unemployment fluctuations result from self-fulfilling changes in expected … 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 …

inflation and unemployment. We focus on the G7 economies plus Spain, and use monthly data –high-frequency data in a macro …. We find that total connectedness is larger for prices (58.28%) than for unemployment (41.81%). We also identify …