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Type	Working Paper
Scope	Discipline-based scholarship
Title	The long-term effects of inflation on inflation expectations
Organization Unit	Banking (Steven Ongena)
Authors	Fabio Braggion Felix Von Meyerinck Nic Schaub Michael Weber
Language	English
Institution	University of Zurich
Series Name	Chicago Booth Paper
Number	23-13
Number of Pages	50
Date	2023
Abstract Text	We study the long-term effects of inflation surges on inflation expectations. German households living in areas with higher local inflation during the hyperinflation of the 1920s expect higher inflation today. Our evidence points towards a transmission of inflation experiences from parents to children and through local institutions. Differential historical inflation also modulates the updating of expectations to current inflation, the response to unconventional fiscal policies, and financial decisions. We obtain similar results in a test with Polish households residing in formerly German areas. Overall, our findings are consistent with inflationary shocks having a long-lasting impact on attitudes towards inflation.
Free access at	DOI
Related URLs	https://www.zora.uzh.ch/id/eprint/252730/ https://www.zora.uzh.ch/id/eprint/253084/ https://www.zora.uzh.ch/id/eprint/253085/
Digital Object Identifier	10.2139/ssrn.4503275
Other Identification Number	merlin-id:23895
PDF File	Download from ZORA
Export	BibTeX EP3 XML (ZORA)