Lu­i­gi Bu­te­ra and co-aut­hors pu­blish in Quar­ter­ly Jour­nal of Eco­no­mi­cs

Fort­hco­m­ing QJE pa­per by Bu­te­ra and co­aut­hors: Using Da­nish re­gi­sters lin­ked to a long-run­ning consu­mer sur­vey, they show that in­f­la­tion be­liefs over­rea­ct to hou­se­hold sho­cks un­re­la­ted to actu­al in­f­la­tion. Idio­syn­cra­tic in­co­me decli­nes and fa­mily ER vi­sits ra­i­se in­f­la­tion ba­ck­casts and forecasts, po­in­ting to af­fecti­ve recall (emo­tion-dri­ven me­mory)