Inflation expectations of households and firms are central determinants in all dynamic macro models. Yet, empirical evidence suggests these decision makers form expectations in ways that deviate from the assumptions in these models: on average, inflation expectations are biased upwards relative to e...
Keywords:
Macroeconomics, Intertemporal Choice, Consumption, Savings, Surveys, Monetary Policy, Fiscal Policy, Experiments, Financial Decision-making, Cognition, Communication.
