Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/261484
Authors: 
Dräger, Lena
Lamla, Michael
Pfajfar, Damjan
Year of Publication: 
2022
Series/Report no.: 
IMFS Working Paper Series No. 168
Publisher: 
Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS), Frankfurt a. M.
Abstract: 
We study the effects of forward looking communication in an environment of rising inflation rates on German consumers' inflation expectations using a randomized control trial. We show that information about rising inflation increases short- and long-term inflation expectations. This initial increase in expectations can be mitigated using forward looking information about inflation. Among these information treatments, professional forecasters' projections seems to reduce inflation expectations by more than policymaker's characterization of inflation as a temporary phenomenon.
Subjects: 
short-run and long-run inflation expectations
inflation surge
randomized control trial
survey experiment
persistent or transitory inflation shock
JEL: 
E31
E52
E58
D84
Document Type: 
Working Paper

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