Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238077 
Year of Publication: 
2020
Series/Report no.: 
Working Papers No. 20-15
Publisher: 
Federal Reserve Bank of Boston, Boston, MA
Abstract: 
Recent research offers mixed results concerning the relationship between inflation expectations and consumption, using qualitative measures of readiness to spend. We revisit this question using survey panel data from the United States of actual spending from 2009 through 2012 that also allow us to control for household heterogeneity. We find that durables spending increases with inflation expectations only for certain types of households, while nondurables spending does not respond to inflation expectations. Moreover, spending decreases with an expected increase in unemployment. These results imply a limited stimulating effect of inflation expectations on aggregate consumption, which could be offset in part or in full if expectations for inflation and unemployment move in the same direction.
Subjects: 
Inflation expectations
survey data
durable and nondurable goods consumption
JEL: 
D12
E52
E58
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
977.22 kB





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