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• W3184341664 startingPage "1597" @default.
• W3184341664 abstract "Abstract Binding lower bounds on interest rates and large government deficits limit the scope of fiscal and monetary policies to stimulate households’ spending through financial intermediaries and firms. Policy makers have thus been implementing unconventional policies that aim to increase households’ spending directly through managing their expectations. We first show theoretically and empirically that higher inflation expectations increase households’ consumption. We then design a difference-in-differences strategy to assess the effectiveness of unconventional fiscal policy and forward guidance, both of which aim to raise aggregate demand via managing expectations. Whereas unconventional fiscal policy increases households’ expectations and spending, forward guidance announcements do not" @default.
• W3184341664 created "2021-08-02" @default.
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• W3184341664 date "2021-07-16" @default.
• W3184341664 modified "2023-10-11" @default.
• W3184341664 title "Managing Households’ Expectations with Unconventional Policies" @default.
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• W3184341664 doi "https://doi.org/10.1093/rfs/hhab083" @default.
• W3184341664 hasPublicationYear "2021" @default.
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