Inflation Levels and (In)Attention

Anat Bracha and Jenny Tang

No 22-4, Working Papers from Federal Reserve Bank of Boston

Abstract: 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 explores evidence of inattention by constructing two different measures of consumers’ inattention and documents greater inattention when inflation is low. This suggests that there is indeed a risk of an acceleration in the increases in inflation expectations if actual inflation remains high.

Keywords: inattention; inflation expectations; expectation anchoring (search for similar items in EconPapers)
JEL-codes: D80 E31 E70 (search for similar items in EconPapers)
Pages: 45
Date: 2022-01-01
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.bostonfed.org/publications/research-de ... nd-in-attention.aspx Summary (text/html)
https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/2022/wp2204.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedbwp:93857

Ordering information: This working paper can be ordered from

DOI: 10.29412/res.wp.2022.04

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Boston Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Spozio ().