In modeling expectation formation, economic agents are usually viewed as forming expectations adaptively or in … accordance with some rationality postulate. We offer an alternative nonlinear model where agents exchange their opinions and …, we show that this kind of model performs well in simulation experiments. Focusing upon producers' expectations in the …

impact of uncertainty and failed expectations induced by money leads to specific patterns of economic disruption. These …

The unconventional monetary policy of forward guidance operates through the management of expectations about future … paths of interest rates. This paper examines the link between expectations formation and the effectiveness of forward … form expectations about future macroeconomic variables via either the standard rational expectations hypothesis or a more …

relaxing two standard macroeconomic assumptions: rational expectations and frictionless financial markets. Agents forecast … future macroeconomic variables via either the rational expectations hypothesis or a more plausible theory of expectations … rational expectations and adaptive learning to forward guidance. The macroeconomic variables are overall more responsive to …

is to predict the future price of an asset. To form their expectations, players see the past realization of the asset …. Considering an increasing fundamental value has no impact on the individual expectations but it increases the volatility of the … results show that the heterogeneity of players' expectations is the main cause of the heterogeneity in the realized price …

are constrained. The Optimal Expectations theory of Brunnermeier and Parker (2005) models beliefs as being constrained …