Inflation Expectations and Behavior: Do Survey Respondents Act on Their Beliefs?

Olivier Armantier, Giorgio Topa, Wilbert van der Klaauw and Basit Zafar

No 20110727, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: Surveys of consumers’ inflation expectations are now a key component of monetary policy. To date, however, little work has been done on 1) whether individual consumers act on their beliefs about future inflation, and 2) whether the inflation expectations elicited by these surveys are actually informative about the respondents’ beliefs. In this post, we report on a new study by Armantier, Bruine de Bruin, Topa, van der Klaauw, and Zafar (2010) that investigates these two issues by comparing consumers’ survey-based inflation expectations with their behavior in a financially incentivized experiment. We find that the decisions of survey respondents are generally consistent with their stated inflation beliefs.

Keywords: Experimental Economics; Survey Design; Inflation Expectations (search for similar items in EconPapers)
JEL-codes: D14 (search for similar items in EconPapers)
Date: 2011-07-27
New Economics Papers: this item is included in nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (33)

Downloads: (external link)
https://libertystreeteconomics.newyorkfed.org/2011 ... n-their-beliefs.html Full text (text/html)

Related works:
Journal Article: INFLATION EXPECTATIONS AND BEHAVIOR: DO SURVEY RESPONDENTS ACT ON THEIR BELIEFS? (2015)
Working Paper: Inflation Expectations and Behavior: Do Survey Respondents Act on their Beliefs? (2012)
Working Paper: Inflation expectations and behavior: Do survey respondents act on their beliefs? (2011)
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:fednls:86759

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Liberty Street Economics from Federal Reserve Bank of New York Contact information at EDIRC.
Bibliographic data for series maintained by Gabriella Bucciarelli ().