monopolistically competitive pricing, higher-order expectations are crucial for aggregate inflation dynamics, as argued by Phelps (1983 …

expectations, macroeconomic dynamics, and the efficient formulation of monetary policy. Economic agents rely on an adaptive … learning technology to form expectations and to update continuously their beliefs regarding the dynamic structure of the … between monetary policy and economic outcomes. We find that policies that would be efficient under rational expectations can …

New surveys provide a wealth of information on how economic agents form their expectations and how those expectations … shape their decisions. We review recent evidence on how changes in macroeconomic expectations, particularly inflation … expectations, affect households' and firms' actions. We show that the provision of information about inflation to households and …

When forming expectations, households may be influenced by the possibility that the information they receive is biased … extract all its useful content. We also find evidence of an asymmetric reaction to inflation signals, with expectations … inflation expectations in less extreme contexts than Argentina, such as the United States and Europe, where experts may agree …

expectations. Using a large-scale survey experiment which we fielded on President Trump's 2025 inauguration day, we study how … Fed, leading to lower inflation expectations and uncertainty. Strategic communication on institutional structure and …