Crump, Richard K.; Eusepi, Stefano; Mönch, Emanuel - 2024
the EH. We introduce a model of expectations formation which features time-varying means and accommodates deviations from … rationality. This model tightly matches the entire joint term structure of expectations for output growth, inflation, and the … decisively rejected in the data, but model-implied short-rate expectations generally display, at best, only a weak co …