IDEAS home Printed from https://ideas.repec.org/p/cor/louvco/2026015.html

Inflation expectations of savers and borrowers

Author

Listed:
  • Masolo, Riccardo M.

    (Università Cattolica del Sacro Cuore)

  • Monti, Francesca

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

Abstract

Households’ inflation expectations depend on their financial conditions, even after controlling demographic factors and expectations about the economic outlook. Specifically, savers report higher inflation expectations than borrowers. We establish these regularities using individual level data from the NY Fed’s Survey of Consumer Expectations, the Public Policy Survey and the Household Finance Survey. We make sense of these findings in a life-cycle model in which ambiguity-averse agents are borrowers and savers at different points in their lives. The wedge in expectations naturally arises as high inflation corresponds to the worst-case scenario for savers, while the opposite is true for borrowers.

Suggested Citation

  • Masolo, Riccardo M. & Monti, Francesca, 2026. "Inflation expectations of savers and borrowers," LIDAM Discussion Papers CORE 2026015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2026015
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2026015. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alain GILLIS (email available below). General contact details of provider: https://edirc.repec.org/data/coreebe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.