The conventional wisdom in macroeconomic modeling is to attribute business cycle fluctuations to innovations in the … understood partly because modeling the latent volatilities can be quite demanding. This paper suggests a simply methodology that … equilibrium models and information in a large panel of data. Our largest volatility factor V₁ is strongly counter …

The conventional wisdom in macroeconomic modeling is to attribute business cycle fluctuations to innovations in the … understood partly because modeling the latent volatilities can be quite demanding. This paper suggests a simply methodology that … equilibrium models and information in a large panel of data. Our largest volatility factor <i>V</i>₁ is strongly …

then provide 22 different forms of information regarding past, current and/or future inflation and interest rates …. Information treatments about current and next year's interest rates have a strong effect on household expectations but treatments … constrained capacity to collect and process information. …

then provide 22 different forms of information regarding past, current and/or future inflation and interest rates …. Information treatments about current and next year's interest rates have a strong effect on household expectations but treatments … constrained capacity to collect and process information. …