This paper uses microdata from the Reserve Bank of New Zealand's Household Inflation Expectations survey to obtain an accurate read of households' true inflation expectations by studying how different demographic groups respond (or do not respond) to the inflation expectations question in the...

We discuss the role of foreign exchange reserves as precautionary savings under an imperfect market framework due to the presence of endogenously determined borrowing constraints. We show that cost of holding reserves is higher in borrowing constrained economies than unconstrained ones as a...