Inflation expectations, consumption and the lower bound: Micro evidence from a large multi-country survey
| Autor: | Geoff Kenny, Ioana Duca-Radu, Andreas Reuter |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Consumption (economics)
Inflation Economics and Econometrics education.field_of_study Credence media_common.quotation_subject 05 social sciences Population Control (management) Upper and lower bounds 0502 economics and business Pseudo panel Econometrics Economics 050207 economics education Finance 050205 econometrics media_common Multi country |
| Zdroj: | Journal of Monetary Economics. 118:120-134 |
| ISSN: | 0304-3932 |
| Popis: | Using a large multi-country survey and new pseudo panel dataset, we investigate the spending response of consumers to their beliefs about future inflation. The analysis exploits the deviation of expected inflation from the currently perceived inflation rate - a choice motivated by local approximation of the traditional Euler equation. This helps control for unobserved heterogeneity and highlights a positive and economically relevant spending response that is generalised in the population and across countries. Also a stronger positive response is observed when the lower bound is binding, thus lending credence to the stabilisation properties of higher inflation expectations during such episodes. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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