Arbeitspapier

Households' Response to the Wealth Effects of Inflation

We study the redistributive effects of inflation combining administrative bank data with an information provision experiment during an episode of historic inflation. On average, households are well-informed about prevailing inflation and are concerned about its impact on their wealth; yet, while many households know about inflation eroding nominal assets, most are unaware of nominal-debt erosion. Once they receive information on the debt-erosion channel, households update upwards their beliefs about nominal debt and their own real net wealth. These changes in beliefs causally affect actual consumption and hypothetical debt decisions. Our findings suggest that real wealth mediates the sensitivity of consumption to inflation once households are aware of the wealth effects of inflation.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 10648

Klassifikation
Wirtschaft
Consumer Economics: Empirical Analysis
Household Saving; Personal Finance
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Expectations; Speculations
Macroeconomics: Consumption; Saving; Wealth
Price Level; Inflation; Deflation
Monetary Policy
Thema
inflation beliefs
information treatment
consumption
monetary policy

Ereignis
Geistige Schöpfung
(wer)
Schnorpfeil, Philip
Weber, Michael
Hackethal, Andreas
Weber, Michael
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2023

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Schnorpfeil, Philip
  • Weber, Michael
  • Hackethal, Andreas
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2023

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