Inflation expectations are key determinants of economic activity and are central to the current policy debate about … whether inflation expectations will remain anchored in the face of recent pandemic-related increases in inflation. This paper … inattention when inflation is low. This suggests that there is indeed a risk of an acceleration in the increases in inflation …

This paper analyses the post-pandemic inflation dynamics in Canada using a behavioral macroeconomic model of the Bank …-pandemic inflation can be explained by these simple heuristics and traced back to the lifting of economic restrictions in mid-2020 …, triggering demand-pull inflation. This result suggests that the cost-push inflation in 2021 and beyond actually originated from a …

A vast literature has documented how US inflation persistence has fallen in recent decades, but this finding is … difficult to explain in monetary models. Using survey data on inflation expectations, I document a positive co-movement between … that inflation is more persistent in periods of greater forecast sluggishness. My results suggest that changes in firm …

This paper provides new evidence on a long-standing question asked by Shiller (1997): Why do we dislike inflation? I … inflation and their reactions to it. The predominant reason for people's aversion to inflation is the widespread belief that it …-income groups. Inflation also provokes stress, emotional responses, and a sense of inequity, as the wages of high-income individuals …

Empirical evidence suggests consumers rely on their shopping experiences to form beliefs about inflation. In other …. Learning by shopping anchors households' beliefs about inflation to its past, causing disagreement with firms over the value of … inflation, increases the degree of anchoring of households' inflation expectations, and flattens the slope of the Phillips curve …

Prior research has documented that attention to inflation shifts when inflation surpasses a 3-4% threshold. In this … note we examine how attention to inflation declines in episodes of disinflation. We show that for countries where inflation … inflation. We show evidence that wage growth is more strongly correlated with past inflation when attention is high. This is one …

One of the dangers of high inflation is that it can cause firms and households to pay close attention to it. This … internalization of inflation can lead to an accelerationist regime, making inflation harder to control. We empirically assess the … relationship between attention and the level of inflation for 37 countries. Our measures of attention are constructed either from …

Prior research has documented that attention to inflation shifts when inflation surpasses a 3-4% threshold. In this … note we examine how attention to inflation declines in episodes of disinflation. We show that for countries where inflation … inflation. We show evidence that wage growth is more strongly correlated with past inflation when attention is high. This is one …