How to Limit the Spillover from an Inflation Surge to Inflation Expectations?
Forschungsbereich: | Monetary Policy |
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Forscher: |
Lena Dräger, Michael J. Lamla, Damjan Pfajfar |
Datum: |
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Abstract: |
The authors study the effects of forward looking communication in an environment of rising inflation rates on German consumers‘ inflation expectations using a randomized control trial. They show that information about rising inflation increases short- and long-term inflation expectations. This initial increase in expectations can be mitigated using forward looking information about inflation. |
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