Expectations and economic fluctuations: an analysis using survey data
Sylvain Leduc and
Keith Sill
No 10-6, Working Papers from Federal Reserve Bank of Philadelphia
Abstract:
Using survey-based measures of future U.S. economic activity from the Livingston Survey and the Survey of Professional Forecasters, the authors study how changes in expectations, and their interaction with monetary policy, contribute to fluctuations in macroeconomic aggregates. They find that changes in expected future economic activity are a quantitatively important driver of economic fluctuations: a perception that good times are ahead typically leads to a significant rise in current measures of economic activity and inflation. The authors also find that the short-term interest rate rises in response to expectations of good times as monetary policy tightens. Their results provide quantitative evidence on the importance of expectations-driven business cycles and on the role that monetary policy plays in shaping them.
Keywords: Economic forecasting; Monetary policy; Business cycles (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-cba, nep-for, nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (6)
Downloads: (external link)
https://www.philadelphiafed.org/-/media/frbp/asset ... pers/2010/wp10-6.pdf (application/pdf)
Related works:
Journal Article: Expectations and Economic Fluctuations: An Analysis Using Survey Data (2013) 
Working Paper: Expectations and economic fluctuations: an analysis using survey data (2010) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedpwp:10-6
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers from Federal Reserve Bank of Philadelphia Contact information at EDIRC.
Bibliographic data for series maintained by Beth Paul ().