EconPapers    
Economics at your fingertips  
 

Average Inflation Targeting and Household Expectations

Olivier Coibion, Yuriy Gorodnichenko, Edward Knotek and Raphael Schoenle

Journal of Political Economy Macroeconomics, 2023, vol. 1, issue 2, 403 - 446

Abstract: Using a daily survey of US households, we study how the Federal Reserve’s announcement of its new strategy of average inflation targeting affected households’ expectations. Starting with the day of the announcement, there is a small uptick in the minority of households reporting that they had heard news about monetary policy, but this effect fades within a few days. Those who heard news about the announcement do not seem to have understood the announcement. When provided with pertinent information about the new policy, households do not change their expectations. These patterns continue to hold 1 year after the announcement.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://dx.doi.org/10.1086/722962 (application/pdf)
http://dx.doi.org/10.1086/722962 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: Average Inflation Targeting and Household Expectations (2021) Downloads
Working Paper: Average Inflation Targeting and Household Expectations (2020) Downloads
Working Paper: Average Inflation Targeting and Household Expectations (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:ucp:jpemac:doi:10.1086/722962

Access Statistics for this article

More articles in Journal of Political Economy Macroeconomics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2025-03-31
Handle: RePEc:ucp:jpemac:doi:10.1086/722962