Inflation expectations formation in the presence of policy shifts and structural breaks : An experimental analysis

@inproceedings{Odriaa2015InflationEF,
  title={Inflation expectations formation in the presence of policy shifts and structural breaks : An experimental analysis},
  author={Lu{\'i}s Ricardo Maertens Odriaa and Gabriel Rodr{\'i}guezb},
  year={2015}
}
  • Luís Ricardo Maertens Odriaa, Gabriel Rodríguezb
  • Published 2015
In this paper we study how inflation expectations are formed and whether these change due to the occurrence of policy shifts or structural breaks. We conduct 4 experiments with 75 inexperienced subjects, in which we ask them to predict future home inflation and report confidence intervals. At three points in time during our experiments, we also ask our participants to provide additional information regarding the uncertainty about their expectations. Our design allowed us to gather 6750 home… CONTINUE READING