Transmission of International Monetary Policy Shocks on Firms Expectations

7 December 2022
Publication Type: Workshop Presentation

The Global Financial Cycle (GFC) exacerbated the effects of global shocks, affecting policy decisions and local outcomes outside of the US. Expectations therefore matter and economic agents are forward-looking as their current actions respond to future beliefs.

This research looks into the empirical evidence on how agents/firms form expectations and explores how global shocks can affect expectations about inflation abroad and its consequences for economic activity and policy.

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