What are the effects of beliefs, sentiment, and uncertainty, over the business cycle? To answer this question, we …) and their beliefs may be influenced by their perceptions about future uncertainty. We estimate the behavioral model using … fluctuations. Shifts in perceived uncertainty can also affect real activity and inflation through a confidence channel, as they …

show rationally inattentive price-setters produce this result. The model also links disagreement and uncertainty – two …

imbalances across time and countries. Current policy makers behavior influences agents ' beliefs about the way debt will be …, can unfold over decades, and accelerate as agents' beliefs deteriorate. Dormant shocks explain the run-up of US inflation … and uncertainty in the 70s. The currently low long term interest rates and inflation expectations might hide the true risk …

show rationally inattentive price-setters produce this result. The model also links disagreement and uncertainty - two …