Kumar, S2020-07-132020-07-132018-04-102018-04-10Journal of Economic Behavior & Organization, 170, 193-205.https://hdl.handle.net/10292/13523This paper investigates the relationship between firms’ inflation expectations and their holdings of liquid assets. We implement a new quantitative survey of firms’ expectations about inflation in New Zealand. We find that firms that hold more shares of liquid assets systematically report lower inflation expectations. Moreover, we implement an experiment by providing firms new exogenous information about recent inflation dynamics. This experiment allows us to assess how firms respond to new information in terms of belief revisions and firm-level decisions.Copyright © 2019 Elsevier Ltd. All rights reserved. This is the author’s version of a work that was accepted for publication in (see Citation). Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. The definitive version was published in (see Citation). The original publication is available at (see Publisher's Version).Liquid assets; Illiquid assets; Expectations; Survey; InattentionJournal ArticleOpenAccess10.1016/j.jebo.2019.12.005