Formation of inflation expectations: From the simple to the rational expectations hypothesis

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

Using quarterly survey expectational data for seven EC countries, this paper tests how producers form their inflation expectations. The results indicate that the simple expectational hypotheses do not give an adequate account of the variation in the price expectational data, because they fail to allow for the information contained in forecast models of inflation. However, the producers generally do not incorporate disequilibrium inflation into their inflation expectations.

Original languageEnglish
Pages (from-to)1331-1337
Number of pages7
JournalApplied Economics
Volume28
Issue number10
DOIs
Publication statusPublished - 1 Jan 1996

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