Inertia of forward-looking expectations

American Economic Review

Volumn 96, Issue 2, 2006, Pages 152-157

  Morris, Stephen ^d   Shin, Hyun Song ^d   Kiyotaki, Nobuhiro ^a   Angeletos, Marios ^b   Atkeson, Andrew ^c  

^a LONDON SCHOOL OF ECONOMICS   (United Kingdom)

^b MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

^c UNIVERSITY OF CALIFORNIA   (United States)

^d PRINCETON UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 33744510900     PISSN: 00028282     EISSN: None     Source Type: Journal    
DOI: 10.1257/000282806777212297     Document Type: Conference Paper

References (22)

1. Adam, Klaus. "Optimal Monetary Policy under Discretion with Imperfect Common Knowledge." Journal of Monetary Economics (forthcoming).
2. Allen, Franklin; Morris, Stephen and Shin, Hyun Song. "Beauty Contests and Iterated Expectations in Asset Markets." Review of Financial Studies (forthcoming).
3. Amato, Jeffery and Shin, Hyun Song. "Imperfect Common Knowledge and the Information Value of Prices." Economic Theory, 2006, 27(1), pp. 213-41.
4. Carroll, Christopher D. "Macroeconomic Expectations of Households and Professional Forecasters." Quarterly Journal of Economics, 2003, 118(1), pp. 269-98.
5. Fuhrer, Jeff and Moore, George. "Inflation Persistence." Quarterly Journal of Economics, 1995, 110(1), pp. 127-59.
6. Galí, Jordi and Gertler, Mark. "Inflation Dynamics: A Structural Econometric Analysis." Journal of Monetary Economics, 1999, 44(2), pp. 195-222.
7. Hayek, Friedrich A. "The Use of Knowledge in Society." American Economic Review, 1945, 35(4), pp. 519-30.
8. Hellwig, Christian. "Public Announcements, Adjustment Delays and the Business Cycle." University of California, Los Angeles, Department of Economics, Economics Online Papers: No. 208, 2002.
9. Lorenzoni, Guido. "Imperfect Information, Consumers' Expectations and Business Cycles." Unpublished Paper, 2003.
10. Lucas, Robert E. "Some International Evidence on Output-Inflation Tradeoffs." American Economic Review, 1973, 63(3), pp. 326-34.
11. Mankiw, N. Gregory and Reis, Ricardo. "Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve." Quarterly Journal of Economics, 2002, 117(4), pp. 1295-328.
12. Morris, Stephen and Shin, Hyun Song. "The Social Value of Public Information." American Economic Review, 2002, 92(5), pp. 1521-34.
13. Nimark, Kristoffer P. "Calvo Pricing and Imperfect Common Knowledge: A Forward Looking Model of Rational Inflation Inertia." European Central Bank, Working Paper Series: No. 474, 2005.
14. Phelps, Edmund S. "Introduction," in Edmund S. Phelps, et al., eds., Microeconomic foundations of employment and information theory. New York: W. W. Norton & Company, 1970, pp. 1-23.
15. Phelps, Edmund S. "The Trouble with 'Rational Expectations' and the Problem of Inflation Stabilization," in Roman Frydman and Edmund S. Phelps, eds., Individual forecasting and aggregate outcomes. New York: Cambridge University Press, 1983, chap. 2.
16. Rotemberg, Julio J. "Monopolistic Price Adjustment and Aggregate Output." Review of Economic Studies, 1982, 49(4), pp. 517-31.
17. Sargent, Thomas J. "Equilibrium with Signal Extraction from Endogenous Variables." Journal of Economic Dynamics and Control, 1991, 15(2), pp. 245-73.
18. Sims, Christopher A. "Implications of Rational Inattention." Journal of Monetary Economics, 2003, 50(3), pp. 665-90.
19. Taylor, John B. "Staggered Price Setting in a Macro Model." American Economic Review, 1980, 69(2), pp. 108-13.
20. Townsend, Robert. "Forecasting the Forecasts of Others." Journal of Political Economy, 1983, 91(4), pp. 546-88.
21. Ui, Takashi. "A Note of the Lucas Model: Iterated Expectations and the Neutrality of Money." Unpublished Paper, 2003.
22. Woodford, Michael. "Imperfect Common Knowledge and the Effects of Monetary Policy," in Philippe Aghion, Roman Frydman, Joseph Stiglitz, and Michael Woodford, eds., Knowledge, information, and expectations in modern macroeconomics: In honor of Edmund S. Phelps, Princeton: Princeton University Press, 2003, chap. 1.