| Autor: |
Hajdini, Ina, Knotek II, Edward S., Leer, John, Pedemonte, Mathieu, Rich, Robert, Schoenle, Raphael |
| Předmět: |
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| Zdroj: |
Working Paper Series (Federal Reserve Bank of Cleveland); 3/27/2023, p1-67, 69p |
| Abstrakt: |
We implement a novel methodology to disentangle two-way causality in inflation and income expectations in a large, nationally representative survey of US consumers. We find a 20 percent passthrough from expected inflation to expected income growth, but no statistically significant effect in the other direction. Passthrough is higher for higher-income individuals and men. Higher inflation expectations increase consumers’ likelihood to search for higher-paying new jobs. In a calibrated search-and-matching model, dampened responses of wages to demand and supply shocks translate into greater output fluctuations. The survey results and model analysis provide a labor market channel for why people dislike inflation. [ABSTRACT FROM AUTHOR] |
| Databáze: |
Complementary Index |
| Externí odkaz: |
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