Carvalho, Carlos Viana de; Eusepi, Stefano; Mönch, Emanuel - 2021 - April 5, 2021
We develop a theory of low-frequency movements in in ation expectations, and use it to interpret joint dynamics of in ation and in ation expectations for the United States and other countries over the post-war period. In our theory long-run in ation expectations are endogenous. They are driven...