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. https://cepr.org/voxeu/columns/long-term-effects-inflation-inflation-expectations
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The recent surge in inflation represents the first time many individuals experience inflation considerably above central banks’ targets. Despite limited inflation experience, inflation expectations of many households have been upward biased relative to ex-post realisations and inflation rates targeted by central banks. This column proposes inflation shocks in the more distant past as an explanation for elevated inflation expectations. Consistent with this conjecture, German households living in areas with higher local inflation during
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Braggion, F., Von Meyerinck, F., Schaub, N., & Weber, M. (2023). The long-term effects of inflation on inflation expectations. https://cepr.org/voxeu/columns/long-term-effects-inflation-inflation-expectations