The purpose of the present paper is to study how households form inflation expectations. Using a novel survey …-base dataset of Italian households' opinions of inflation we investigate two separate, but related, types of behavior …: 'inattentiveness' and 'anchoring'. The present analysis extends the existing literature by incorporating explicitly inflation targets …

This research highlights the role played by the media in the inflation expectations formation process of different … transforming text into quantitative indicators, which reflect news topics relevant to inflation expectations. As such, I found … evidence that the different news topics have an impact on inflation expectations and can explain part of their variance. Thus …

, 𝑢𝑡 ∗ , in the aftermath of the pandemic and characterize its implications for inflation dynamics. While the bulk of the … inflation surge is attributed to temporary supply factors, we also find an important role for current and expected negative …

inflation and on unemployment. This relationship can be motivated by the existence of the Taylor rule. Using micro survey data … mainly driven by disagreement on inflation. Exploring further determinants, we confirm that central bank transparency as well …

In this paper, we explore the degree of anchoring of consumers' individual long-run inflation expectations utilizing …-run inflation expectations became more anchored over the last decades, as the degree of co-movement between short- and long … seems that older cohorts, who experienced the high inflation period of the 1970s, remain less anchored in their long …

Inflation expectations are key to economic activity, and in the current economic climate of a heated labor market, they … therefore individual behavior, may not be sensitive to changes in inflation when it is low. This paper explores evidence of such … inflation expectations. Exploring inflation thresholds of 2, 3, and 4 percent, our findings are consistent with the inattention …

A regime shift towards increased inflation expectations is credited with jumpstarting the recovery from the Great … Depression in the United States. Germany experienced a recovery as fast and strong in the 1930s. What role did inflation … expectations play at the start of this remarkable economic upturn? To answer this question, we study inflation expectations in …

We explore the dynamics of inflation, inflation expectations, and seigniorage-financed fiscal deficits in Mexico. To do … so, we estimate the model in Sargent, Williams, and Zha (2009) using Mexican CPI inflation data. This model features dual … expected inflation equilibriums and regime switching in the mean and variance of the fiscal deficit probability density …