Agarwal, Sumit; Chua, Yeow Hwee; Ghosh, Pulak; Song, … - 2022
This paper exploits a natural experiment in India – Inflation Targeting to study how changes in inflation expectations … influence households’ consumption, savings, and investments in risky assets. Using regional heterogeneity in inflation … expectations by city and city-age-gender bins due to the Inflation Targeting policy, we provide evidence of portfolio rebalancing …