Surrey Future Fellow @economicssurrey. Interested in macro and information economics.
Nov 11, 2022 • 24 tweets • 9 min read
Expectations of inflation/unemployment/etc feature heavily in policy (esp. this year).
But expectations aren't some universal variable that's the same for everyone – people disagree about macro variables all the time!
Should you care? My JMP shows you should! #Econjobmarket
Specifically, I ask: when, and how, does heterogeneity in expectations affect the way shocks transmit to aggregate outcomes?
I look at that in a very general macro framework, that nests all your favourite GE models – and then I study an application to households and inflation.