and second moments of inflation expectations separately affect subsequent household decisions. We document several key … encourages household job search, leading to higher subsequent employment among the unemployed and less under-employment among the …

I construct a novel measure of household uncertainty based on survey data for European countries. I show that household … uncertainty shocks are not universally like negative demand shocks. Notably, household uncertainty shocks are largely inflationary … role in the transmission of household uncertainty to inflation. I develop an Overlapping Generations New Keynesian model …