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Determinants of Inflation Expectations

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  • Richhild Moessner

Abstract

This paper analyses the determinants of short-term inflation expectations based on surveys of professionals, using dynamic cross-country panel estimation for a large number of 34 OECD economies. We find that food consumer price inflation and depreciations of the domestic exchange rate have significant positive effects on professionals’ survey-based inflation expectations. Moreover, core consumer price inflation and the output gap have significant positive effects.

Suggested Citation

  • Richhild Moessner, 2021. "Determinants of Inflation Expectations," CESifo Working Paper Series 9485, CESifo.
  • Handle: RePEc:ces:ceswps:_9485
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    References listed on IDEAS

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    12. Richhild Moessner, 2021. "Effects of Inflation Expectations on Inflation," CESifo Working Paper Series 9467, CESifo.
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    More about this item

    Keywords

    inflation expectations; inflation; food prices; exchange rates;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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