Inflation Expectations As a Policy Tool?

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aut.relation.journalJournal of International Economicsen_NZ
aut.relation.volume124en_NZ
aut.researcherKumar, Saten
dc.contributor.authorCoibion, Oen_NZ
dc.contributor.authorGorodnichenko, Yen_NZ
dc.contributor.authorKumar, Sen_NZ
dc.contributor.authorPedemonte, Men_NZ
dc.date.accessioned2020-08-05T04:16:18Z
dc.date.available2020-08-05T04:16:18Z
dc.date.copyright2020-04-08en_NZ
dc.date.issued2020-04-08en_NZ
dc.description.abstractWe assess the prospects for central banks using inflation expectations as a policy tool for stabilization purposes. We review recent work on how expectations of agents are formed and how they affect their economic decisions. Empirical evidence suggests that inflation expectations of households and firms affect their actions but the underlying mechanisms remain unclear, especially for firms. Two additional limitations prevent policy-makers from being able to actively manage inflation expectations. First, available surveys of firms' expectations are systematically deficient, which can only be addressed through the creation of large, nationally representative surveys of firms. Second, neither households' nor firms' expectations respond much to monetary policy announcements in low-inflation environments. We provide suggestions for how monetary policy-makers could pierce this veil of inattention through new communication strategies as well as the potential pitfalls to trying to do so.
dc.identifier.citationJournal of International Economics (2020), Vol.124, Article 103297.
dc.identifier.doi10.1016/j.jinteco.2020.103297en_NZ
dc.identifier.issn0022-1996en_NZ
dc.identifier.urihttps://hdl.handle.net/10292/13581
dc.publisherElsevieren_NZ
dc.relation.urihttps://www.sciencedirect.com/science/article/pii/S0022199620300167?via%3Dihub
dc.rights© 2020 The Authors. Published by Elsevier B.V. This article is available under the Creative Commons CC-BY-NC-ND license and permits non-commercial use of the work as published, without adaptation or alteration provided the work is fully attributed.
dc.rights.accessrightsOpenAccessen_NZ
dc.subjectSurvey; Inflation expectations; Firms; Managers
dc.titleInflation Expectations As a Policy Tool?en_NZ
dc.typeJournal Article
pubs.elements-id383238
pubs.organisational-data/AUT
pubs.organisational-data/AUT/Business, Economics & Law
pubs.organisational-data/AUT/Business, Economics & Law/Economics
pubs.organisational-data/AUT/Business, Economics & Law/Economics/Economics PBRF 2012
pubs.organisational-data/AUT/Faculty of Business, Economics and Law
pubs.organisational-data/AUT/Faculty of Business, Economics and Law/School of Economics
pubs.organisational-data/AUT/PBRF
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/Faculty Review Team PBRF 2018
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/School of Economics PBRF 2018
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