We study the link between expected inflation and wages using novel panel data from German firms and employees. We find … that pass-through - the percentage point change in wage growth given a one percentage point change in expected inflation … extensive margin, expected inflation has little effect on additional wage negotiations. …

account middle-inflation overestimate the impact of financial expectations. …

with rational expectations. We extend a standard New Keynesian model with a zero-lower bound on inflation expectations …

We review recent research and experiences linking inflation and expectations, emphasizing what has been learned since … 2020. One clear lesson is that the inflation expectations of most economic agents have been and remain unanchored. The … unanchored nature of inflation expectations, in combination with supply shocks, can explain much of the inflation surge and …

inflation (sunspot shocks) affecting nominal wage bargaining. Since the estimated parameters fall near the locus of Hopf … bifurcations, country-specific expected inflation shocks can replicate the strong persistence and heterogeneity observed in …, choose to consume their current income. -- Unemployment fluctuations ; sunspots equilibria ; expected inflation ; wage …

Households' and firms' subjective inflation expectations play a central role in macroeconomic and intertemporal … microeconomic models. We discuss how subjective inflation expectations are measured, the patterns they display, their determinants …

This paper examines how homeownership status shapes attention to inflation and its impact on durable consumption. Using … randomized controlled trials on U.S. households (2021-2023), we document systematic heterogeneity in responses to inflation … variation in inflation expectations induced by the treatments, we find that homeowners adjust durable spending significantly …