Beyond Rationality: Unveiling the Role of Animal Spirits and Inflation Extrapolation in Central Bank Communication of the US

• Tác giả: Arpan Chakraborty
• Ngôn ngữ: eng
• Ký hiệu phân loại: 332.11 Central banks
• Thông tin xuất bản: 2024
• Bộ sưu tập: Báo, Tạp chí
• ID: 204200

Tóm tắt

Modern macroeconomic models, particularly those grounded in Rational Expectation Dynamic Stochastic General Equilibrium (DSGE), operate under the assumption of fully rational decision-making. This paper examines the impact of behavioral factors on the communication index/sentiment index of the US Federal Reserve. [Upon receiving the review comments, I found some technical errors in the paper. I shall update it accordingly. Please do not cite this paper without author's permission.]