The growing theoretical and empirical literature suggests that globalization may have reduced inflation, particularly in high-income countries. Austria’s integration in the world economy has made a quantum leap over the past decade. Has this development dampened inflation in Austria? This...

Aggregate measures of inflation expectations mask heterogeneity among consumers. According to the theoretical and empirical literature, expectations may differ due to different information sets and “models” used by individuals. European Commission Consumer Survey data confirm considerable...