In this paper we use a non-tatonnement dynamic macroeconomic model to study the role of inventories, expectations and … evaluate economic policies like quantitative easing as well as the effectiveness of holding inflationary expectations to … recover to full employment. If inflationary expectations are not sufficient, imposing downward rigidity of nominal wages helps …

inflation, increases the degree of anchoring of households' inflation expectations, and flattens the slope of the Phillips curve …

Survey data on inflation expectations show that: (i) private sector forecasts and central bank forecasts are not fully … aligned and (ii) private sector forecasters disagree about inflation expectations. To reconcile these two facts we introduce … dispersed information in a New Keynesian model, where as a result, inflation expectations differ between the private sector and …

Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the … cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models …

Policy implications are derived for an inflation-targeting central bank, whose credibility is endogenous and depends on … rational expectations. We find that the region of allowed policy parameters is strictly larger than under rational expectations … occur, depending on the credibility of the central bank. Deflationary spirals can be prevented with a high inflation target …

productivity and cost shocks that de-anchored inflation expectations, propagated via self-fulfilling inflation expectations and …

We estimate a Heterogeneous-Agent New Keynesian model with sticky household expectations that matches existing …

the dynamic relationship between shocks to monetary policy expectations and fluctuations in economic activity and … of changes in expectations about monetary policy. Our results show that when interest rates are away from the zero … of changes in expectations about monetary policy is robust when we control for other features of the transmission …

the dynamic relationship between shocks to monetary policy expectations and fluctuations in economic activity and … of changes in expectations about monetary policy. Our results show that when interest rates are away from the zero … of changes in expectations about monetary policy is robust when we control for other features of the transmission …