substantially. We document this fact by comparing an easy-to-grasp expectations-based policy, unconventional fiscal policy, with a … 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 …

unconventional policies that aim to increase households' spending directly through managing their expectations. We first show … theoretically and empirically that higher in ation expectations increase households' consumption. We then design a difference … demand via managing expectations. Whereas unconventional fiscal policy increases households' expectations and spending …

, and expectations are shown. The dynamic development of temporary equilibria is defined by orbits of a dynamical system …

This paper develops a model of policy regime uncertainty and its consequences for stabilizing expectations. Because of … learning dynamics, uncertainty about monetary and fiscal policy is shown to restrict, relative to a rational expectations … analysis, the set of policies consistent with macroeconomic stability. Anchoring expectations by communicating about monetary …