Firms and households form inflation expectations very differently – paper

inflation

The divergence in inflation expectations in the eurozone during the pandemic might be explained by how firms and households factor in confidence, according to new research from the Central Bank of Ireland.

In Inflation expectations of euro area consumers and firms, Conor Parle and Zivile Zekaite note confidence in the economy is “strongly associated” with inflation expectations. But this works very differently for firms and households, they find.

“Consumers’ confidence tends to move negatively

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact i[email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: