What Can Measured Beliefs Tell Us About Monetary Non-Neutrality?

This paper was formerly circulated under the title: “Selection in Information Acquisition and Monetary Non-Neutrality.” We are grateful to Olivier Coibion and Yuriy Gorodnichenko for their invaluable feedback and for sharing data. We also thank Saroj Bhattarai, Mark Dean, Chen Lian, Giuseppe Moscarini, Karthik Sastry, Luminita Stevens, and Michael Woodford as well as seminar participants at Columbia University, University of Notre Dame, LMU Munich, Princeton University, University of Texas at Austin, the Federal Reserve Banks of Cleveland, Richmond, and St. Louis, the Federal Reserve Board, and the NBER Monetary Economics conference for thoughtful comments and suggestions. The views expressed herein are those of the authors and do not reflect the views of the Federal Reserve Board, any person associated with the Federal Reserve System, or the National Bureau of Economic Research.