Publication: The long-term effects of inflation on inflation expectations
The long-term effects of inflation on inflation expectations
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Braggion, F., Von Meyerinck, F., Schaub, N., & Weber, M. (2023). The long-term effects of inflation on inflation expectations (No. 23–13; Chicago Booth Paper). https://doi.org/10.2139/ssrn.4503275
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We study the long-term effects of inflation surges on inflation expectations. German households living in areas with higher local inflation during the hyperinflation of the 1920s expect higher inflation today. Our evidence points towards a transmission of inflation experiences from parents to children and through local institutions. Differential historical inflation also modulates the updating of expectations to current inflation, the response to unconventional fiscal policies, and financial decisions. We obtain similar results in a t
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Braggion, F., Von Meyerinck, F., Schaub, N., & Weber, M. (2023). The long-term effects of inflation on inflation expectations (No. 23–13; Chicago Booth Paper). https://doi.org/10.2139/ssrn.4503275
