The inflation expectations of U.S. firms: Evidence from a new survey

Bernardo Candia, Olivier Coibion and Yuriy Gorodnichenko

Journal of Monetary Economics, 2024, vol. 145, issue S

Abstract: Introducing a new survey of U.S. firms’ inflation expectations, we document key stylized facts involving what U.S. firms know and expect about inflation and monetary policy. The resulting time series of firms’ inflation expectations displays unique dynamics, distinct from those of households and professional forecasters. By any typical definition of “anchored” expectations, the inflation expectations of U.S. managers in a low-inflation environment appear far from anchored, much like those of households. And like households, U.S. managers are largely uninformed about recent aggregate inflation dynamics or monetary policy. These results complement existing evidence on firms’ inflation expectations from other countries and confirm that inattention to inflation and monetary policy is pervasive among U.S. firms as well.

Keywords: Expectations; Surveys; Anchoring; Rational inattention (search for similar items in EconPapers)
JEL-codes: E3 E4 E5 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: THE INFLATION EXPECTATIONS OF U.S. FIRMS: EVIDENCE FROM A NEW SURVEY (2021)
Working Paper: The Inflation Expectations of U.S. Firms: Evidence from a New Survey (2021)
Working Paper: The Inflation Expectations of U.S. Firms: Evidence from a new survey (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:145:y:2024:i:s:s0304393224000229

DOI: 10.1016/j.jmoneco.2024.103569

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