Even though the Fed cut interest rates in 2024 and 2025, mortgage rates have stayed high, frustrating many would-be homebuyers. AP Photo/Jenny KaneU.S. homebuyers can’t get a break.
Lawrence J. Christiano, Martin Eichenbaum, and Benjamin K. JohannsenThis paper provides an analytic characterization of the speed of convergence under learning to a rational expectations equilibrium (REE) for a large class of multivariate models. We show that learning is slower when people's beliefs about model outcomes are more self-fulfilling.
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Governments and car manufacturers sell electric cars as the future of green transport. But a less visible trend is challenging this story: many electric cars are getting bigger.
Edmund Crawley and William L. GamberWe estimate how much household spending responds directly to changes in interest rates. We develop a Bayesian procedure that uses the empirical impulse responses to macroeconomic shocks to discipline the consumer block of a HANK model. The procedure can be applied shock-by-shock or pooled jointly.
Edmund Crawley and William L. GamberWe estimate how much household spending responds directly to changes in interest rates. We develop a Bayesian procedure that uses the empirical impulse responses to macroeconomic shocks to discipline the consumer block of a HANK model. The procedure can be applied shock-by-shock or pooled jointly.
Colorado ranks 12th in the nation for the highest average credit card debt with more than $7,000. Oscar Wong/Getty ImagesColorado’s breathtaking landscapes are increasingly overshadowed by breathtaking bills.
The latest meeting of the Synchronisation thematic engagement working group
Some visitors from the U.S., Canada and most European countries can’t get an electronic travel authorization and are being turned away from planes, trains and boats.
Matthieu Bussière, Johanna Gilbert, and Olesya GrishchenkoUsing data on euro-area household inflation forecasts from the European Commission Consumer Survey, we show that households' perceptions of recent price changes play a key role in the formation of their inflation expectations. Such a relationship remains robust when we account for specific inflation components, household characteristics, and macroeconomic conditions, even though the perceptions-expectations relationship is heterogeneous across countries.
fizkes/ShutterstockSpend ten minutes talking to a soon-to-be graduate about their job search and you might come away convinced that a university degree has become a confidence trick.
