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Monday, 6 April 2015

Another source of disagreement about real rates is differences in inflation expectations.

http://web.stanford.edu/~piazzesi/illusion.pdf

Another source of disagreement about real rates is differences in inflation expectations. This is considered in Piazzesi and Schneider (2006), where we use inflation surveys to document differences in expected inflation rates across age cohorts in the 1970s and quantify the effect of such differences for house and stock price movements at that time.

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