macroeconomic model where long-run inflation expectations are heterogeneous and can lose their anchoring to the target. The … delays would have unanchored inflation expectations, aggravated the inflation scare and strengthened the inflation surge …

Professional forecasters' long-run inflation expectations overreact to news and exhibit persistent, predictable biases … in forecast errors. A model incorporating overconfidence in private information and a persistent expectations bias … tool for studying long-run inflation expectations. Our analysis highlights substantial, timevarying heterogeneity in …

rates via the expectations hypothesis (EH). While the EH has been systematically rejected in the data, existing work … evaluating the EH generally assumes either full-information rational expectations or stationarity of beliefs, or both. As such … the EH. We introduce a model of expectations formation which features time-varying means and accommodates deviations from …