Expectations of Inflation: The Biasing Effect of Thoughts about Specific Prices

  title={Expectations of Inflation: The Biasing Effect of Thoughts about Specific Prices},
  author={W. B. D. Bruin and W. V. D. Klaauw and G. Topa},
  journal={Journal of Economic Psychology},
  • W. B. D. Bruin, W. V. D. Klaauw, G. Topa
  • Published 2011
  • Economics
  • Journal of Economic Psychology
  • National surveys follow consumers’ expectations of future inflation, because these may directly affect the economic choices they make, indirectly affect macro-economic outcomes, and are considered in monetary policy. Yet, relatively little is known about how individuals form the inflation expectations they report on consumer surveys. Medians of reported inflation expectations tend to track official estimates of realized inflation, but show large heterogeneity between respondents, due to some… CONTINUE READING
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