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What to Expect When Everyone is Expecting : Self-Fulfilling Expectations and Asset-Pricing Puzzles

Garleanu, Nicolae - 2019

We study an economy without bubbles in which expectations about future discount rates can become self-fulfilling because asset valuations redistribute wealth across different investor cohorts. For such redistribution to take place, the wealth of arriving and existing cohorts must react...

Persistent link: https://www.econbiz.de/10012858612

Information-Based Heterogeneity in Expectations and Optimal Monetary Policy

Coco, Alberto - 2014

This paper analyses optimal monetary policy and welfare implications of three endogenous processes in forming inflation … forecast rules; the third process is a Bayesian learning about the central bank's inflation target. Transitional dynamics …

Persistent link: https://www.econbiz.de/10013059719

The Information Content of Survey Data on Expected Price Developments for Monetary Policy

Gerberding, Christina - 2016

Persistent link: https://www.econbiz.de/10012991300

Persistence and scarring in a non-linear New Keynesian model with experienced-based-expectations

Dennis, Richard J. - 2021

Persistent link: https://www.econbiz.de/10012632126

Forward guidance with unanchored expectations

Eusepi, Stefano; Gibbs, Chris; Preston, Bruce - 2021

We study zero interest-rate policy in response to a large negative demand shock when long-run expectations can fall over time. Because falling expectations make monetary policy less effective by raising real interest rates, the optimal forward guidance policy makes large front-loaded promises to...

Persistent link: https://www.econbiz.de/10012614064

Alternative monetary policy rules and expectational consistency

Drumond, Carlos Eduardo Iwai; Jesus, Cleiton Silva de; … - In: Evolutionary and institutional economics review 19 (2022) 1, pp. 319-341

Persistent link: https://www.econbiz.de/10013270576

Monetary policy & anchored expectations : an endogenous gain learning model

Gáti, Laura - 2022

This paper analyzes monetary policy in a model with a potential unanchoring of inflation expectations. The degree of … unanchoring is given by how sensitively the public's long-run inflation expectations respond to inflation surprises. I find that … inflation fluctuations when expectations are well-anchored. Furthermore, I estimate the model-implied relationship that …

Persistent link: https://www.econbiz.de/10013285965

The Impact of monetary policy on yield curve expectations

Boeck, Maximilian; Feldkircher, Martin - In: Journal of economic behavior & organization : JEBO 191 (2021), pp. 887-901

Persistent link: https://www.econbiz.de/10013186638

Learning About Monetary Policy Rules When Long-Horizon Expectations Matter

Preston, Bruce J. - 2015

This paper considers the implications of an important source of model misspecification for the design of monetary policy rules: the assumed manner of expectations formation. Following a considerable literature on learning, it is assumed that private agents seek to maximize their objectives...

Persistent link: https://www.econbiz.de/10013032843

Discussion of Preston, 'Learning About Monetary Policy Rules When Long-Horizon Expectations Matter'

Honkapohja, Seppo - 2015

The design of interest rate rules for conducting monetary policy have recently been examined for two key concerns. The first issue is determinacy of equilibria. Indeterminacy (multiplicity of stationary rational expectations equilibria) is a concern in models of monopolistic competition and...

Persistent link: https://www.econbiz.de/10013032847