Recent advances in the fast-growing subfield of behavioral macroeconomics, with applications to business cycles and monetary economics. We will discuss surveys and controlled laboratory experiments that test the full information rational expectations (FIRE) hypothesis, and characterize deviations from FIRE in individual beliefs and actions, and we will study models that relax both the FI and the RE assumptions in general equilibrium settings, to bridge the gap between individual biases and constraints on the one hand and aggregate consequences and policy implications on the other.