How to limit the spillover from an inflation surge to inflation expectations?
- The authors study the effects of forward looking communication in an environment of rising inflation rates on German consumers‘ inflation expectations using a randomized control trial. They show that information about rising inflation increases short- and long-term inflation expectations. This initial increase in expectations can be mitigated using forward looking information about inflation. Among these information treatments, professional forecasters‘ projections seem to reduce inflation expectations by more than policymakers‘ characterization of inflation as a temporary phenomenon.
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| Author: | Lena DrägerGND, Michael J. LamlaORCiDGND, Damjan PfajfarORCiD |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-651790 |
| Parent Title (English): | Working paper series / Institute for Monetary and Financial Stability ; 168 |
| Series (Serial Number): | Working paper series / Institute for Monetary and Financial Stability (168) |
| Publisher: | Johann Wolfgang Goethe-Univ., Inst. for Monetary and Financial Stability |
| Place of publication: | Frankfurt am Main |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2022 |
| Year of first Publication: | 2022 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2022/08/04 |
| Tag: | Short-run and long-run inflation expectations; inflation surge; persistent or transitory inflation shock; randomized control trial; survey experiment |
| Issue: | July 4, 2022 |
| Page Number: | 21 |
| HeBIS-PPN: | 499060822 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / Institute for Monetary and Financial Stability (IMFS) | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
