less concerned with government spending stabilization than society eliminates expectations-driven liquidity traps …

inflation and deflationary biases in inflation expectations. In a model with an occasionally binding zero-lower-bound constraint … of this model using unique individual-level inflation expectations data across nine countries that allow for a direct … identification of these biases. Both inflation and deflationary biases are present (and sizable) in inflation expectations of these …

effects of the effective lower bound (ELB). However, these strategies work in part by managing the public's expectations … ability to manage expectations reduces but does not eliminate the advantages of L4L policies. The best policies provide …

In expectations-driven liquidity traps, a higher inflation target is associated with lower inflation and consumption …. As a result, introducing the possibility of expectations-driven liquidity traps to an otherwise standard model lowers the … interest rates, we find that even a very small probability of falling into an expectations-driven liquidity trap lowers the …