How to Limit the Spillover from an Inflation Surge to Inflation Expectations?

Arbeitspapier

We study the effects of forward-looking communication in an environment of rising inflation rates on German consumers' inflation expectations using a randomized control trial. We 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 policymaker's characterization of inflation as a temporary phenomenon.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 10330

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Price Level; Inflation; Deflation ; Monetary Policy ; Central Banks and Their Policies ; Expectations; Speculations
• Thema: short-run and long-run inflation expectations ; inflation surge ; randomized control trial ; survey experiment ; persistent or transitory inflation shock

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dräger, Lena ; Lamla, Michael J. ; Pfajfar, Damjan
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2023

Weitere Informationen

• Handle: http://hdl.handle.net/10419/271974
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ