The article presents a temporary equilibrium framework for macroeconomic analysis that
allows for a wide range of possible specifications of expectations but reduces to a standard …

In recent years, a broad academic consensus has arisen that favors using rational
expectations sticky‐price models to capture inflation dynamics. We review the principal …

Macro-finance theory implies that trend inflation and the equilibrium real interest rate are
fundamental determinants of the yield curve. However, empirical models of the term …

Over the last two decades, communication has become an increasingly important aspect of
monetary policy. These real-world developments have spawned a huge new scholarly …

How do individuals form expectations about future inflation? We propose that individuals
overweight inflation experienced during their lifetimes. This approach modifies existing …

A lot. We derive common and conflicting predictions from models in which agents face
information constraints and then assess their validity using surveys of consumers, firms …

Most central banks perceive a trade‐off between stabilizing inflation and stabilizing the gap
between output and desired output. However, the standard new Keynesian framework …

Inflation expectations are central to economics because they affect the effectiveness of fiscal
and monetary policy, as well as realized inflation. We survey the recent literature with a …

On 1 June 2018 the ECB celebrated its 20th anniversary. This paper provides a
comprehensive view of the ECB's monetary policy over these two decades. The first section …

A notable change in central banking over the past 15 years has been a world-wide
movement toward increased communication by central banks about their policy decisions …