EconPapers    
Economics at your fingertips  
 

Inflation expectations in euro area Phillips curves

Luis Alvarez and Mónica Correa-López

Economics Letters, 2020, vol. 195, issue C

Abstract: We analyze the information content of alternative inflation expectations measures, including those from consumers, firms, experts and financial markets, in the context of open economy Phillips curves. We adopt a thick modeling approach with rolling regressions and we assess the results of an out-of sample conditional forecasting exercise by means of meta regressions. The information content varies substantially across inflation expectations measures. In particular, we find that those from consumers and firms are better at predicting inflation if compared to those from experts and, especially, those from financial markets.

Keywords: Inflation dynamics; Inflation expectations; Phillips curve; Euro area; Thick modeling; Meta regressions (search for similar items in EconPapers)
JEL-codes: E31 E37 E52 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176520302780
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Inflation expectations in euro area Phillips curves (2020) Downloads
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:eee:ecolet:v:195:y:2020:i:c:s0165176520302780

DOI: 10.1016/j.econlet.2020.109449

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-12-19
Handle: RePEc:eee:ecolet:v:195:y:2020:i:c:s0165176520302780