Chen, Jiaqian; Górnicka, Lucyna; Zdarek, Vaclav - 2022
This paper documents five facts about inflation expectations in the euro area. First, individual inflation forecasts … average expectations (and of actual inflation) to shocks became more muted post-GFC in the euro area, but not in the U.S … overreact to individual news. Second, the cross-section average of individual forecasts of inflation underreact to shocks …