volatility and a deviation from equilibrium even in the long run. In a third treatment with staggered pricing we observe …, contrary to theoretical predictions, the one-round ahead (publicly known) shock is significant, but future inflation is not …. Our findings cast light on price dynamics when subjects have limited computational capacities. -- Inflation Persistence …

We consider the classical investment timing problem in a framework where the instantaneous volatility of the project …), we consider processes of similar functional form, but with Heston stochastic volatility replacing the constant volatility … that compared to the classical cases with constant volatility, the question of whether additional stochastic volatility …

under alternative policy regimes. In our experimental economy, monetary policy targets inflation around a constant or state … communicating the state-dependent inflation targets reduce the duration or severity of economic crises. Introducing anticipated and …

largest effect, reducing volatility of individual price and expenditure forecasts by one-quarter and four-fifths, respectively …, and cutting a quarter of macroeconomic volatility. Forward-looking announcements have less effect on individual forecasts …

inflation and the output gap by at least two-thirds. These stabilization benefits can be substantially smaller if expectations …

Establishing the external validity of experimental inflation forecasts is essential if laboratory experiments are to be … used as decision-making tools for monetary policy. Our contribution is to document whether different measures of inflation … information, suggesting the presence of some form of bounded rationality or information imperfections. Finally, lagged inflation …