Philippe Andrade, Richard Crump, Stefano Eusepi, Emanuel Moench, 23 December 2014

Expectations are critical for macroeconomics and financial markets. But the expectation-formation process is not well understood. This column discusses some empirical characteristics of forecast disagreement from professional forecasters in the US, and discusses the ‘information frictions’ that underlie the heterogeneity of expectations.

Jordi Galí, 12 February 2013

This paper examines the impact of alternative monetary policy rules on a rational asset price bubble, through the lens of an overlapping generations model with nominal rigidities. The paper's main findings call into question the theoretical foundations of the case for "leaning against the wind" monetary policies.

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