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, and how they shape households' and firms' economic...

This paper discusses the recent wave of research that has emphasized the importance of measures of consumers' inflation expectations. In contrast to other measures of expected inflation, such as for experts or financial market participants, consumers' inflation expectations capture the broader...