Haque, Q.Ascari, G.Albonico, A.2025-10-232025-10-232024Journal of Money, Credit and Banking, 2024; 56(4):769-8040022-28791538-4616https://hdl.handle.net/2440/147964We estimate a medium-scale model with and without rule-of-thumb consumers over the pre-Volcker and the Great Moderation periods, allowing for indeterminacy. Passive monetary policy and sunspot fluctuations characterize the pre-Volcker period for both models. In both subsamples, the estimated fraction of rule-of-thumb consumers is low, such that the two models are empirically almost equivalent; they yield very similar impulse response functions, variance, and historical decompositions. We conclude that ruleof- thumb consumers are irrelevant to explain aggregate U.S. business cycle fluctuations.en© 2023 The Authors. Journal of Money, Credit and Banking published by Wiley Periodicals LLC on behalf of Ohio State University. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.rule-of-thumb consumers; indeterminacy; business cycle fluctuationsJournal article10.1111/jmcb.13057563952Haque, Q. [0000-0003-0694-4443]