The rational expectations hypothesis is a bedrock of modern macroeconomics. It is often
combined with a strong, complementary hypothesis that all data about the state of the …

We implement a survey of Dutch households in which random subsets of respondents
receive information about inflation. The resulting exogenously generated variation in …

We ask how fiscal deficits are financed in environments with two key features:(i) nominal
rigidity, and (ii) a violation of Ricardian equivalence due to finite lives or liquidity constraints …

New surveys provide a wealth of information on how economic agents form their
expectations and how those expectations shape their decisions. We review recent evidence …

We estimate perceptions about the Federal Reserve's monetary policy rule from panel data
on professional forecasts of interest rates and macroeconomic conditions. The perceived …

We compare causal effects of forward guidance about future interest rates on households'
expectations of inflation and nominal mortgage rates to the effects of communication about …

Our understanding of monetary policy is complicated by an indeterminacy problem: the
same path for the nominal interest rate is consistent with multiple equilibrium paths for …

We review how realistic frictions in information and/or rationality arrest general equilibrium
(GE) feedbacks. In one specification, we maintain rational expectations but remove common …

We study the power of unemployment insurance (UI) to stabilize short-run fluctuations in a
state-of-the-art Heterogeneous-Agent New Keynesian (HANK) model featuring endogenous …

A survey on monetary policy communication among former members of the Governing
Council of the European Central Bank (ECB) reveals that enhancing credibility and trust is …