For Germany and Switzerland, unlike for the US, data from periodic surveys of producing firms exist. These surveys cover questions regarding price setting and output decisions that are relevant for the study of inflation dynamics. The New Keynesian Phillips curve, in particular, holds that...

This study takes up Keynes' ideas concerning long-term expectations, particularly his notion that expectations are subject to sudden changes with strong effects on economic activity. We start by detailing Keynes' views regarding the nature of expectations and their role in the business cycle. I...

This article starts with the conjecture that the subjective element of expectations is important for understanding and measuring the effects of government’s indebtedness on financial market rates. For this purpose we propose a modern model of extrapolative expectations for the Debt-to-GDP...

This is a short review of hypotheses on expectations formation in economics. The text focuses on the competition between the notions of rational and extrapolative expectations. A thought experiment is offered to rationalize the ongoing popularity of rational expectations

This article relates to the view expressed by Pigou and Keynes that whatever factors affect the demand for goods it is ultimately producers' expectations and plans that determine the level of output. We build on this notion in order to address the question how changes in monetary policy affect...