Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099142 | Journal of Economic Dynamics and Control | 2009 | 13 Pages |
Abstract
This paper shows that the Michigan survey data on inflation expectations is consistent with a simple sticky information model where a significant proportion of households base their inflation expectations on the past release of actual inflation rather than the rational forward-looking forecast. In particular, the model can explain both the mean and cross-sectional distribution of households' inflation expectations.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Markku Lanne, Arto Luoma, Jani Luoto,