We employ senior bank loan officers' responses regarding actual and expected loan demand from enterprises linking successive surveys to determine the dominant expectation formation mechanism that best describes European senior bank loan officers' expectations. Our findings suggest that the...

This work highlights a previously overlooked factor that contributes to bias in private inflation forecasts-ignorance of confidential monetary rules. Additionally, it examines how this ignorance indirectly affects policy rate settings. The model proposed reconciles biases in two key forecast...