The Optimal Monetary Policy Response to Belief Distortions: Model-Free Evidence

Jonathan Adams and Symeon Taipliadis

No RWP 25-04, Research Working Paper from Federal Reserve Bank of Kansas City

Abstract: Data suggest that monetary policy should ease to offset inflation over-pessimism among households.

Keywords: monetary policy; inflation; household expectations (search for similar items in EconPapers)
JEL-codes: D84 E30 E52 E70 (search for similar items in EconPapers)
Pages: 31
Date: 2025-06-23
New Economics Papers: this item is included in nep-mon
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Working Paper: The Optimal Monetary Policy Response to Belief Distortions: Model-Free Evidence (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedkrw:101182

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DOI: 10.18651/RWP2025-04.

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