TY  - UNPD
A1  - Schnorpfeil, Philip
A1  - Weber, Michael
A1  - Hackethal, Andreas
T1  - Households' response to the wealth effects of inflation
N2  - We study the redistributive effects of inflation combining administrative bank data with an information provision experiment during an episode of historic inflation. On average, households are well-informed about prevailing inflation and are concerned about its impact on their wealth; yet, while many households know about inflation eroding nominal assets, most are unaware of nominal-debt erosion. Once they receive information on the debt-erosion channel, households update upwards their beliefs about nominal debt and their own real net wealth. These changes in beliefs causally affect actual consumption and hypothetical debt decisions. Our findings suggest that real wealth mediates the sensitivity of consumption to inflation once households are aware of the wealth effects of inflation.
T3  - SAFE working paper - 400 
KW  - Inflation Beliefs
KW  - Information Treatment
KW  - Consumption
KW  - Monetary Policy
Y1  - 2023
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/71516
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-715161
UR  - https://ssrn.com/abstract=4277575
PB  - SAFE
CY  - Frankfurt am Main
ER  -