CONSUMERS' INFLATION EXPECTATIONS AND MONETARY POLICY IN EUROPE |
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| Authors: | Jan Marc Berk |
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| Institution: | Berk:;Deputy Director, Monetary and Economic Policy Department, De Nederlandsche Bank, and Associate Professor, Faculty of Economics and Business Administration, Vrije Universiteit, P.O. Box 98, 1000 AB, Amsterdam, Netherlands. E-mail |
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| 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. |
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