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9282 Results

How Do Households Respond to Expected Inflation? An Investigation of Transmission Mechanisms

Staff Working Paper 2024-44 Janet Hua Jiang, Rupal Kamdar, Kelin Lu, Daniela Puzzello
We conduct surveys to study how consumer spending responds to higher inflation expectations. Most respondents spend the same, sticking to fixed budget plans or not considering inflation for spending decisions. About 20% decrease spending because they feel poorer and cut spending to invest in inflation-proof assets. Very few increase spending.
November 7, 2024

John Kuszczak Memorial Lecture 2024

The credibility revolution in inflation expectations — Address by Ricardo Reis, London School of Economics, with introductory remarks by Rhys Mendes, Deputy Governor.
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