Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144837
Authors: 
Hoffmann, Mathias
Hürtgen, Patrick
Year of Publication: 
2016
Series/Report no.: 
Discussion Paper, Deutsche Bundesbank 31/2016
Abstract: 
Survey data on inflation expectations show that: (i) private sector forecasts and central bank forecasts are not fully aligned and (ii) private sector forecasters disagree about inflation expectations. To reconcile these two facts we introduce dispersed information in a New Keynesian model, where as a result, inflation expectations differ between the private sector and the central bank. We show that output and inflation responses change markedly when the central bank responds to private sector inflation expectations rather than to their own.
Subjects: 
business cycles
survey data
learning
disagreement
monetary policy
JEL: 
E52
E31
D83
ISBN: 
978-3-95729-288-9
Document Type: 
Working Paper

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