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Lookup NU author(s): Dr Robert AndersonORCiD
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0).
Using data from the Michigan survey, this paper empirically analyses the differing influences on inflation expectations over sub-groups of US consumers, defined by gender, age and income. We find little support for the hypothesis that the differences are associated with inflation experience, as represented by the expenditure patterns of these groups, and strong evidence of differing responses to economic news. While negative inflation news leads to significantly higher expectations across all groups, heterogenous responses are evident to other types of news (particularly that related to employment), with positive news often unimportant. A common finding across all sub-groups is that the housing inflation differential compared with overall CPI plays a negative role for expectations, which may be associated with the measurement of this component in the CPI.
Author(s): Anderson RDJ, Becker R, Osborn DR
Publication type: Conference Proceedings (inc. Abstract)
Publication status: Published
Conference Name: Money Macro and Finance Research Group 46th Annual Conference
Year of Conference: 2014
Online publication date: 19/09/2014
Acceptance date: 30/05/2014
Date deposited: 05/09/2017
Publisher: The Money Macro and Finance Research Group
URL: http://www.mmf.ac.uk/index.php/conferences/12-past/10-2014
