Work

Households’ inflation perceptions and expectations: survey evidence from New Zealand

Year: 2021

Type: article

Abstract: In this paper, we study how inflation is viewed by the general population of New Zealand. Based on unique representative survey data collected in 2016 and using descriptive statistics and multivariate regressions, we explore various aspects of how laypersons perceive inflation and form inflation expectations. We focus on how an individual’s economic situation, information search and interest in inflation, economic knowledge, and attitudes and values are related to inflation perception and expectation, as well as the individual’s reaction to them. We interpret our findings as a clear indication that laypersons’ knowledge about inflation is much better described by the imperfect information view prevailing in social psychology than by the rational actor view typically assumed in economics.

Source: International Economics and Economic Policy

DOI: 10.1007/s10368-021-00524-3

Authors: Bernd Hayo, Florian Neumeier

Institutions: Philipps University of Marburg, Ludwig-Maximilians-Universität München

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,780

Funder: Philipps-Universität Marburg