Updating inflation expectations

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: MAGKS Joint Discussion Paper Series in Economics ; No. 16-2012

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications ; Monetary Policy ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
• Subject: inflation expectation formation ; time-varying parameters ; Bayesian methods ; disagreement ; media coverage ; stochastic volatility ; Inflationserwartung ; Zeit ; Informationsverhalten ; Wirtschaftsinformation ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lamla, Michael J. ; Sarferaz, Samad
• Event: Veröffentlichung
• (who): Philipps-University Marburg, Faculty of Business Administration and Economics
• (where): Marburg
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/73072
• Last update: 10.03.2025, 11:44 AM CET