restriction measures and local unemployment rates on inflation expectations. We find that consumers who were locally more exposed … to COVID-19 cases report higher inflation expectations. ‘e relationship between the virus spread and inflation …

citizens in January 2019 that is designed to measure long-term inflation expectations and the credibility of the inflation … recession implied by the COVID-19 pandemic. Interestingly, even though inflation rates in Germany have been clearly below 2% for … several years, credibility has declined mainly because Germans increasingly expect that inflation will be much higher than 2 …

expectations. These responses stand in stark contrast to that of household inflation expectations (as measured by the University of …) following the onset of the pandemic, while household measures of inflation expectations jumped markedly. Third, despite the … (like professional forecasters) have responded to the COVID-19 pandemic by lowering their one-year-ahead inflation …

citizens in January 2019 that is designed to measure long-term inflation expectations and the credibility of the inflation … recession implied by the COVID-19 pandemic. Interestingly, even though inflation rates in Germany have been clearly below 2% for … several years, credibility has declined mainly because Germans increasingly expect that inflation will be much higher than 2 …