uncertainty with the dispersion of point-estimates among individual forecasters (a measure of disagreement). We also assess the …

We study a model with repeated moral hazard where financial contracts are not fully indexed to inflation because … indexed to inflation and, as a result, their investment is more sensitive to nominal price shocks. We also find that the … inflation uncertainty are less vulnerable to a price shock of a given magnitude. The micro predictions of the model are tested …

central banks objectives and (ii) inflation uncertainty. This distinction turns out to be crucial. I assume that the … disclosure of information affects the degree of uncertainty about central bank objectives. Actual inflation uncertainty is … policy leads to more wage discipline, which in turn lowers average inflation. In equilibrium, the variance of inflation may …

, raising prices. More complex collateralised contracts, like CDOs, can increase prices further. In contrast, with disagreement …

We present a novel source of disagreement grounded in decision theory: ambiguity aversion. We show that ambiguity … aversion generates endogenous disagreement between a firm's insider and outside shareholders, creating a new rationale for …

(economic) transparency, and given our findings that disagreement among inflation expectations in the general public is not … announcing a quantified inflation objective, other forms of communication, or by publishing central banks’ inflation and output …