, including the very long run. We suggest a model with noisy information and shifting long-run beliefs that is consistent with …

This paper lays down a model where dispersed information generates booms and busts in economic activity. Boom … demand and overturns their expectations, generating a bust. This emphasizes a novel role for imperfect common knowledge …: dispersed information makes firms ignorant about their competitors' actions, which makes them confuse high noise-driven supply …

monetary policy has changed the degree of information rigidity after the emergence of the subprime crisis. We proceed by … estimating potential effects of interest rate changes on expectations, disagreements and forecast errors. We find strong evidence … for information rigidities and identify higher forecast errors by professionals after monetary policy shocks. Our results …