The Subjective Inflation Expectations of Households and Firms: Measurement, Determinants, and Implications

Michael Weber, D’Acunto, Francesco (), Yuriy Gorodnichenko and Olivier Coibion
Additional contact information
D’Acunto, Francesco: Georgetown University

No 15391, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Households' and firms' subjective inflation expectations play a central role in macroeconomic and intertemporal microeconomic models. We discuss how subjective inflation expectations are measured, the patterns they display, their determinants, and how they shape households' and firms' economic choices in the data and help us make sense of the observed heterogeneous reactions to business-cycle shocks and policy interventions. We conclude by highlighting the relevant open questions and why tackling them is important for academic research and policy making.

Keywords: financial decision-making; experiments; fiscal policy; monetary policy; surveys; savings; consumption; intertemporal choice; macroeconomics; cognition; communication (search for similar items in EconPapers)
JEL-codes: D1 D2 D8 D9 E2 E3 E4 E5 E7 J1 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2022-06
New Economics Papers: this item is included in nep-ifn and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (87)

Published - published in: Journal of Economic Perspectives. 2022, 36 (3), 157–184

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Related works:
Journal Article: The Subjective Inflation Expectations of Households and Firms: Measurement, Determinants, and Implications (2022)
Working Paper: The Subjective Inflation Expectations of Households and Firms: Measurement, Determinants, and Implications (2022)
Working Paper: The Subjective Inflation Expectations of Households and Firms: Measurement, Determinants, and Implications (2022)
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