consumption via managing inflation expectations based on the Euler equation. Unconventional fiscal policy uses trivial … announcements of future consumer-price increases to boost inflation expectations and consumption expenditure on impact. Instead …

theoretically and empirically that higher in ation expectations increase households' consumption. We then design a difference …

income, consumption and wealth and implies a substantial loss in individual welfare compared to the allocation under full …

proposed. These expectation adjustments generate highly heterogenous consumption responses to income windfalls: many households … previous explanations for these effects, including consumption adjustment cost and liquidity constraints. At the aggregate … level, consumption is less sensitive to expansionary policies during recessions and its excess smoothness varies …

Macroeconomic models often invoke consumption "habits" to explain the substantial persistence of macroeconomic … consumption growth. But a large literature has found no evidence of habits in the microeconomic datasets that measure the behavior … aggregate consumption growth reflects consumers' imperfect attention to aggregate shocks. Our proposed degree of (macro …

evidence has implications for the role of asset price expectations in business cycle dynamics and consumption inequality. …

government spending, a change in taxation does not alter the set of feasible life-time consumption plans of the households and …

expansionary effects on consumption, despite a decline in current disposable income. Intuitively, people may accumulate a stock of … savings in anticipation of the consolidation and may start to reduce their savings to support consumption once it occurs. We … consumption, which supports the expectations channel. We also find that the expectations channel is more pronounced if the fiscal …