Updating inflation expectations
Year: 2012
Type: preprint
Abstract: This paper investigates how inflation expectations evolve. In particular, we analyze the time-varying nature of the propensity to update expectations and its potential determinants. For this purpose we set up a flexible econometric model that tracks the formation of inflation expectations of consumers at each moment in time. We show that the propensity to update inflation expectations changes substantially over time and is related to the quantity and the quality of news.
Source: SSRN Electronic Journal
Authors: Lamla, Michael J., Sarferaz, Samad
Institutions: University of Essex, ETH Zurich
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1511522821