Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83594
Authors: 
Gábriel, Péter
Year of Publication: 
2010
Series/Report no.: 
MNB Working Papers 2010/12
Abstract: 
Although in modern monetary economics it is usually assumed that inflation expectations play a prominent role when economic agents set prices and wages, the empirical evidence for this link is scarce. This paper aims to identify the effect of changes in inflation expectations on prices and wages in an sVaR framework for three inflation targeting countries (Czech Republic, Hungary and United Kingdom). The results show that in all countries the effect is significant. in comparison with the United Kingdom and the Czech Republic, inflation expectations in Hungary are more volatile and less anchored, which can be an important source of the high volatility of the inflation rate.
Subjects: 
inflation expectations
consumer survey
JEL: 
C83
D84
E31
Document Type: 
Working Paper

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