The Behavioral Economics of Inflation Expectations: Macroeconomics Meets Psychology

As one of the first texts to take a behavioral approach to macroeconomic expectations, this book introduces a new way of doing economics. R theli uses cognitive psychology in a bottom-up method of modeling macroeconomic expectations. His research is based on laboratory experiments and historical data, which he extends to real-world situations. Pattern extrapolation is shown to be the key to understanding expectations of inflation and income. The quantitative model of expectations is used to analyze the course of inflation and nominal interest rates in a range of countries and historical periods. The model of expected income is applied to the analysis of business cycle phenomena such as the great recession in the United States. Data and spreadsheets are provided for readers to do their own computations of macroeconomic expectations. This book offers new perspectives in many areas of macro and financial economics.

Author: Tobias F. Rötheli
Publisher: Cambridge University Press
Published: 08/13/2020
Pages: 243
Binding Type: Paperback
Weight: 0.74lbs
Size: 9.00h x 6.00w x 0.52d
ISBN: 9781108447065

Review Citation(s):
Choice 09/01/2021

About the Author
Rötheli, Tobias F.: - Tobias F. Rötheli is Professor of Macroeconomics at the University of Erfurt.