Coibion, Olivier; Gorodnichenko, Yuriy; Ropele, Tiziano - 2021
We use a unique design feature of a survey of Italian firms to study the causal effect of inflation expectations on … recent inflation whereas other firms are not. This information treatment generates exogenous variation in inflation … expectations. We find that higher inflation expectations on the part of firms leads them to raise their prices, increase demand for …