Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/251465 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 5/2022
Publisher: 
Bank of Finland, Helsinki
Abstract: 
I construct a novel measure of household uncertainty based on survey data for European countries. I show that household uncertainty shocks do not universally behave like negative demand shocks. Notably, household uncertainty shocks are largely inflationary in Europe. Further analysis, including a comparison of results across countries, suggest that factors related to average markups along with monetary policy play a role in the transmission of household uncertainty to inflation. These results lend support to a pricing bias mechanism as an important transmission channel.
Subjects: 
uncertainty
inflation
surveys of expectations
JEL: 
D84
E30
E52
E71
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-402-4
Document Type: 
Working Paper

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