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Expectations in an open economy hyperinflation : evidence from Germany 1921-23

Reghezza, Alessio; Seghezza, Elena; Thornton, John - In: Economics letters 192 (2020), pp. 1-3

Persistent link: https://www.econbiz.de/10012508588

Survey expectations, adaptive learning and inflation dynamics

Rychalovska, Yuliya; Slobodyan, Sergey; Wouters, Rafael - 2024

Persistent link: https://www.econbiz.de/10014545353

Learning as a Rational Foundation for Macroeconomics and Finance

Evans, George W.; Honkapohja, Seppo - 2011

Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models in real time. This approach provides a stability test for...

Persistent link: https://www.econbiz.de/10014183715

A Dynamic IS-LM Model with Adaptive Expectations

Altar, Moisa - 2008

We analyze the stability of a discrete-time dynamic model with an IS-LM structure. We assume that the Aggregate Supply function is of Lucas type, and the monetary policy rule is of Friedman type. The mechanism of expectations formation is assumed to be of adaptive type (Friedman-Cagan). In its...

Persistent link: https://www.econbiz.de/10014217067

Monetary Policy, Endogenous Inattention, and the Volatility Trade-Off

Branch, William; Carlson, John B.; Evans, George W.; … - 2007

This paper addresses the output-price volatility puzzle by studying the interaction of optimal monetary policy and agents' beliefs. We assume that agents choose their information acquisition rate by minimizing a loss function that depends on expected forecast errors and information costs....

Persistent link: https://www.econbiz.de/10014223070

How Do Adaptive Learning Expectations Rationalize Stronger Monetary Policy Response in Brazil?

Dizioli, Allan; Wang, Hou - 2023

Phillip's curves with different expectation formation processes for Brazil and the USA. Other than the standard rational … in fitting the data in both Brazil and the USA. In addition, the estimation shows that expectations are more backward …-looking and started to drift away sooner in 2021 in Brazil than in the USA. We then conduct optimal policy exercises that …

Persistent link: https://www.econbiz.de/10014254728