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This paper studies consumption and savings decisions of Danish households before and during the financial crisis as … well as in the more recent years characterized by negative policy rates. While all household groups decreased their … during recent years. This indicates that household balance-sheet adjustment is a relatively long process, which has extended …
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We investigate how households update their interest rate and inflation expectations upon hearing monetary condition news, and to what extent this changes their readiness to spend. Using data from the Michigan Survey of Consumers from December 2008 to December 2015, we find 1) the likelihood of...
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Households' and firms' subjective inflation expectations play a central role in macroeconomic and intertemporal microeconomic models. We discuss how subjective inflation expectations are measured, the patterns they display, their determinants, and how they shape households' and firms' economic...
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