Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the … cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models …

unconventional policies that aim to increase households' spending directly through managing their expectations. We first show … theoretically and empirically that higher in ation expectations increase households' consumption. We then design a difference … demand via managing expectations. Whereas unconventional fiscal policy increases households' expectations and spending …