This paper studies the role of expectations and monetary policy on the economy's response to climate actions. We show … mitigation tool, with a carbon tax entailing more emissions uncertainty than in a rational expectations model and a cap … inflation under control, and by the adoption of monetary rules tied to expectations rather than current macroeconomic conditions …

day-to-day changes in expectations of future US monetary policy, in the context of a study of day-to-day exchange rate … changes. We analyze more than 12 years of daily exchange rate data and show that continuous day-to-day changes in expectations …

This paper analyzes how the formation of expectations constrains monetary and fiscal policy design. Economic agents … the policy regime using historical data. Regime uncertainty substantially narrows, relative to a rational expectations … analysis of the model, the menu of policies consistent with expectations stabilization. When agents are learning about the …

Is there a systematic mapping between the Federal Reserve's expectations of macro variables and the words it uses to …

substantially. We document this fact by comparing an easy-to-grasp expectations-based policy, unconventional fiscal policy, with a … consumption via managing inflation expectations based on the Euler equation. Unconventional fiscal policy uses trivial … announcements of future consumer-price increases to boost inflation expectations and consumption expenditure on impact. Instead …

achieve robustness against incomplete information about the structure of the economy by distorting their expectations in a … particular direction.It shows how a linear rational expectations equilibrium under concern for robustness can be solved by … responses of private consumption to government expenditure shocks under robust expectations. …

This paper analyses the role of inflation expectations in the euro area. On one hand, the question is how inflation … expectations affect both inflation and output,and, on the other hand, how inflation expectations reflect developments in these … variables. The analyses make use of a simple VAR model of inflation, inflation expectations and the output gap that allows for …

stabilize economic growth and in ation expectations through the signaling channel. In doing so, we assess survey …-based expectations data for up to 44 economies from 2002 to 2017 and analyze the impact of the adoption of a negative interest rate … policy on expectations made by professionals based on a difference-in-differences approach. Our main findings are as follows …