Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216966 
Year of Publication: 
2020
Series/Report no.: 
Hannover Economic Papers (HEP) No. 666
Publisher: 
Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät, Hannover
Abstract: 
Using a new consumer survey dataset, we document a new dimension of heterogeneity in inflation expectations that has implications for consumption and saving decisions as well as monetary policy transmission. We show that German households with the same inflation expectations differently assess whether the level of expected inflation and of nominal interest rates is appropriate or too high/too low. The 'hidden heterogeneity' in expectations stemming from these opinions is related to demographic characteristics and affects current and planned spending in addition to the Euler equation effect of the perceived real interest rate. Furthermore, these differences in opinions affect German households differently depending on whether they are renters or homeowners.
Subjects: 
Macroeconomic expectations
monetary policy perceptions
survey microdata
JEL: 
E31
E52
E58
D84
Document Type: 
Working Paper

Files in This Item:
File
Size
1.14 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.