OPINIONS | April 27, 2026What Households Think Monetary Policy DoesStandard New Keynesian models tell a clean story about how changes in interest rates affect households. Higher rates raise the real interest rate, leading households to postpone consumption, and slow economic activity enough to soften wage growth and employment, reinforcing the contraction through an income channel. In a recent paper, we use a survey of more than 25,000 U.S. households, combined with randomized information experiments, to ask how Americans believe monetary policy affects them. Read more CMT Conference on Expectations and Behavior May 21, 2026Glickman Conference Center, RLP 1.302BThe inaugural California-Michigan-Texas (CMT) Conference on Expectations and Behavior will be held on May 21, 2026. This conference, co-organized by the University of Michigan, UC Berkeley, and UT Austin, will rotate across institutions, beginning this year with UT Austin. We are delighted to welcome Stefanie Stantcheva, Nathaniel Ropes Professor of Political Economy at Harvard University as the keynote speaker. Learn More… Learn More RESEARCH Learn More OPINIONS Learn More JOB MARKET STUDENTS PARTNER WITH EMPCT When you make a gift to support EMPCT, you help us contribute to the advancement of macroeconomic understanding and policy design. Find out more. Give Now > CONNECT WITH EMPCT Would you like to connect? Please click on the link below. CONTACT US
