Managing unanchored, heterogeneous expectations and liquidity traps
We study the possibility of (almost) self-fulfilling waves of optimism and pessimism and self-fulfilling liquidity traps in a New Keynesian model with a continuum of heterogeneous expectations. In particular, all agents choose, based on past forecasting performance, expectation values out of a distr...
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| Main Authors: | , |
|---|---|
| Format: | Article (Journal) |
| Language: | English |
| Published: |
29 January 2019
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| In: |
Journal of economic dynamics & control
Year: 2019, Volume: 101, Pages: 1-16 |
| ISSN: | 0165-1889 |
| DOI: | 10.1016/j.jedc.2019.01.004 |
| Online Access: | Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1016/j.jedc.2019.01.004 Verlag, lizenzpflichtig, Volltext: https://www.sciencedirect.com/science/article/pii/S0165188919300223 
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| Author Notes: | Cars Hommes, Joep Lustenhouwer |
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