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Households' disagreement on inflation expectations and socioeconomic media exposure in Germany

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  • Menz, Jan-Oliver
  • Poppitz, Philipp

Abstract

Inflation expectations are often found to depend on socioeconomic and demographic characteristics of households, such as age, income and education, however, the reasons for this systematic heterogeneity are not yet fully understood. Since accounting for these expectation differentials could help improve the communication strategies of central banks, we test the impact of three sources of the demographic dependence of inflation expectations using data for Germany. Overall, our findings suggest that household-specific inflation rates and group-specific news consumption accounts for the higher expectation gaps of younger and older households, households with lower income and unemployed survey respondents, while households' inflation perceptions only play a minor role. --

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Bibliographic Info

Paper provided by Deutsche Bundesbank, Research Centre in its series Discussion Papers with number 27/2013.

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Date of creation: 2013
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Handle: RePEc:zbw:bubdps:272013

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Keywords: Inflation Expectations and Perceptions; Demographic Heterogeneity; News Media Effects; Household-Specific Inflation Rates; System Estimation;

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Cited by:
  1. Lena Dräger & Ulrich Fritsche, 2013. "Don't Worry, Be Right! Survey Wording Effects on In flation Perceptions and Expectations," Macroeconomics and Finance Series 201308, Hamburg University, Department Wirtschaft und Politik.

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