Inflation Expectations and Inflation Uncertainty in the Eurozone: Evidence from Survey Data
AbstractThis paper uses the European Commissionâs Consumer Survey to assess whether inflation expectations have converged and whether inflation uncertainty has diminished following the introduction of the Euro in Europe. Consumersâ responses to the survey suggest that inflation expectations depend more on past national inflation rates than on the ECBâs anchor for price stability. The convergence in inflation expectations does not appear to be faster than the convergence in actual inflation rates. Regarding inflation uncertainty, the data indicate a relationship with country size, suggesting that within EMU, inflation uncertainty may increase in countries that have a smaller influence on ECB policy.
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Bibliographic InfoArticle provided by Springer in its journal Review of World Economics.
Volume (Year): 144 (2008)
Issue (Month): 2 (July)
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Other versions of this item:
- Ivo J. M. Arnold & Jan J.G. Lemmen, 2006. "Inflation Expectations and Inflation Uncertainty in the Eurozone: Evidence from Survey Data," CESifo Working Paper Series 1667, CESifo Group Munich.
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