non-refereed

On FIRE, news, and expectations

The full-information rational expectations (FIRE) assumption is at the core of modern macroeconomics. We revisit recent evidence which rejects FIRE based on survey data. It relates forecast errors to news at different levels of aggregation. The …

Firm expectations about production and prices: Facts, determinants, and effects

This chapter revisits survey evidence about firm expectations, with a particular focus on firms' production and prices. We aim at synthesizing the evidence established on the basis of various firm surveys from different countries. We complement our …

How Should Central Banks Deal with a Financial Stability Objective? The Evolving Role of Communication as a Policy Instrument