This paper discusses the evolution of central bank communication, focusing on recent efforts
by central banks to engage with a wider audience via social media. We document the social …

This paper analyzes how bounded rationality affects monetary and fiscal policy via an
empirically relevant enrichment of the New Keynesian model. It models agents' partial …

This survey discusses behavioral and experimental macroeconomics, emphasizing a
complex systems perspective. The economy consists of boundedly rational heterogeneous …

Agent‐based computational economics (ACE) has been used for tackling major research
questions in macroeconomics for at least two decades. This growing field positions itself as …

Forecasts of professional forecasters are anomalous: they are biased, forecast errors are
autocorrelated, and predictable by forecast revisions. We propose that these anomalies …

Economists commonly suppose that persons have probabilistic expectations for uncertain
events, yet empirical research measuring expectations was long rare. The inhibition against …

We develop a theory of low-frequency movements in inflation expectations, and use it to
interpret joint dynamics of inflation and inflation expectations for the United States and other …

Abstract The New Keynesian theory of inflation determination is tested in this paper by
means of laboratory experiments. We find that the Taylor principle is a necessary condition …

We develop the first agent-based model (ABM) that can compete with benchmark VAR and
DSGE models in out-of-sample forecasting of macro variables. Our ABM for a small open …

This paper proposes a theory of the fiscal foundations of inflation based on imperfect
knowledge and learning. Because imperfect knowledge breaks Ricardian equivalence, the …