Firms and consumers form expectations differently – Irish paper

The Central Bank of Ireland
The Central Bank of Ireland
William Murphy

Consumers and firms in the eurozone form their expectations of future inflation very differently, an economic letter published by the Central Bank of Ireland finds.

In Inflation expectations of euro area consumers and firms, Conor Parle and Zivile Zekaite use data from the European Commission’s survey of eurozone businesses and consumers. They find that confidence in the economy is important in forming expectations. 

But this works differently for firms and consumers, they say. Firms with high

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