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Whose expectations augment the Phillips curve?

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  • Binder, Carola Conces

Abstract

This letter uses consumer survey data to estimate expectations-augmented Phillips curves with inflation expectations disaggregated by socioeconomic and demographic groups. The inflation expectations of high-income, college-educated, male, and working-age people play a larger role in inflation dynamics than do the expectations of other groups of consumers or of professional forecasters.

Suggested Citation

  • Binder, Carola Conces, 2015. "Whose expectations augment the Phillips curve?," Economics Letters, Elsevier, vol. 136(C), pages 35-38.
    • Handle: RePEc:eee:ecolet:v:136:y:2015:i:c:p:35-38
    DOI: 10.1016/j.econlet.2015.08.013
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    References listed on IDEAS

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    1. Olivier Coibion & Yuriy Gorodnichenko, 2015. "Is the Phillips Curve Alive and Well after All? Inflation Expectations and the Missing Disinflation," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(1), pages 197-232, January.
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    More about this item

    Keywords

    Inflation; Heterogeneous expectations; Phillips curve;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • D1 - Microeconomics - - Household Behavior

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