Abstract
This article analyses the effects of monetary policy decisions on inflation expectations of European consumers. Using a novel approach, I convert qualitative survey responses of consumers in various European countries into a quantitative time series of inflation expectations. I investigate the effects of unanticipated movements in interest rates and inflation on inflation expectations across European countries. I inter alia seek to explore whether the reaction differs of consumers in countries with more credible central banks than those in less credible countries. (JEL C31, C32, E58).
Original language | English |
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Pages (from-to) | 122-133 |
Number of pages | 12 |
Journal | Contemporary Economic Policy |
Volume | 20 |
DOIs | |
Publication status | Published - 2002 |