Must-Read: Yes, “anchoring” and “extrapolative” rational-inattention (and non-rational-inattention) models do much better in explaining expectations than do rational expectations models. Why do you ask? Olivier Coibion et al: How Do Firms Form Their Expectations? New Survey Evidence: “We implement a new survey of firms’ macroeconomic beliefs in New Zealand… …and document a number of novel … Continue reading Must-Read: Olivier Coibion et al.: How Do Firms Form Their Expectations? New Survey Evidence