Footnote:
In: Oxford Bulletin of Economics and Statistics, Vol. 77, Issue 5, pp. 681-700, 2015
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 2015 erstellt
Description:
We analyze the interrelation between consumers' quantitative inflation perceptions and expectations as well as actual inflation rates in Sweden. The role of media reports about inflation is emphasized. Structural vector error correction models show stable cointegration between actual, perceived and expected inflation. Impulse responses and forecast error variance decompositions suggest strong interaction between perceived and expected inflation, with a lesser role for actual inflation. Media effects are generally small, but imply an asymmetric reaction of inflation expectations and perceptions to news on increasing vs. decreasing inflation. Thus, to anchor inflation expectations, central banks should explore better communication channels to inform consumers about actual inflation