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What is Inflation Consumption 2021 about?

This study analyzes the relationship between consumer inflation expectations and spending behavior using a large multi-country survey dataset from the euro area. It finds that consumers tend to increase their spending in anticipation of rising inflation, with a more pronounced effect observed when nominal interest rates are at a lower bound. The research also highlights significant heterogeneity in this response based on demographic factors such as education and income levels.

Author

Ece Düşmez

Language

EN