ABSTRACT. To avoid conditioning their estimation on whether or not there was a policy change, a fact that is only known ex post, Carpenter and Demiralp focus exclusively on anticipation of policy changes that took place at FOMC meetings. González remarks that bank investment in borrowing firms is driven by two different factors: the wish to reduce agency costs in the lending relationship and the aim to buy undervalued firms, obtaining capital gains by exploiting inside information. Preston postulates a framework where agents optimally make forecasts of macroeconomic conditions many periods into the future when making current decisions.