Arbeitspapier
Inflationary household uncertainty shocks
I construct a novel measure of household uncertainty based on survey data for European countries. I show that household uncertainty shocks do not universally behave like negative demand shocks. Notably, household uncertainty shocks are largely inflationary in Europe. Further analysis, including a comparison of results across countries, suggest that factors related to average markups along with monetary policy play a role in the transmission of household uncertainty to inflation. These results lend support to a pricing bias mechanism as an important transmission channel.
- ISBN
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978-952-323-402-4
- Language
-
Englisch
- Bibliographic citation
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Series: Bank of Finland Research Discussion Papers ; No. 5/2022
- Classification
-
Wirtschaft
Expectations; Speculations
Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
Monetary Policy
Macro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy‡
- Subject
-
uncertainty
inflation
surveys of expectations
- Event
-
Geistige Schöpfung
- (who)
-
Ambrocio, Gene
- Event
-
Veröffentlichung
- (who)
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Bank of Finland
- (where)
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Helsinki
- (when)
-
2022
- Handle
- URN
-
urn:nbn:fi:bof-202202141057
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Ambrocio, Gene
- Bank of Finland
Time of origin
- 2022
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