Resource title

The Dynamics of European Inflation Expectations

Resource image

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Resource description

We investigate the relevance of the Carroll?s sticky information model of inflation expectations for four major European economies (France, Germany, Italy and the United Kingdom). Using survey data on household and expert inflation expectations we argue that the model adequately captures the dynamics of household inflation expectations. We estimate two alternative parametrizations of the sticky information model which differ in the stationarity assumptions about the underlying series. Our baseline stationary estimation suggests that the average frequency of information updating for the European households is roughly once in 18 months. The vector error-correction model implies households update information about once a year.

Resource author

Jörg Döpke, Jonas Dovern, Ulrich Fritsche, Jirka Slacalek

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18464

Resource license

Adapt according to the presented license agreement and reference the original author.