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Pesaran, Mohammad Hashem; Chudik, Alexander - 2011

This paper considers the problem of aggregation in the case of large linear dynamic panels, where each micro unit is … Pesaran (2003), an optimal aggregate function is derived, and the limiting behavior of the aggregation error is investigated … which 'observed' inflation persistence at the aggregate level is due to aggregation and/or common unobserved factors. Our …

Persistent link: https://www.econbiz.de/10010285540

Beyond Groceries: Financial Confidence and the Gender Gap in Inflation Expectations

Reiche, Lovisa - 2024

The gender gap in inflation expectations, women reporting systematically higher expectations in consumer surveys, has been attributed to traditional gender norms, and thus women's greater exposure to volatile food prices. This overlooks a crucial factor: financial answer confidence. Using data...

Persistent link: https://www.econbiz.de/10015211296

Inflation and Trading

Schnorpfeil, Philip; Weber, Michael; Hackethal, Andreas - 2024

We study how investors respond to inflation combining a customized survey experiment with trading data at a time of historically high inflation. Investors' beliefs about the stock return-inflation relation are very heterogeneous in the cross section and on average too optimistic. Moreover, many...

Persistent link: https://www.econbiz.de/10015211339

Japan's Low Inflation Conundrum

Mayer, Thomas; Schnabl, Gunther - 2022

The paper analyses the reasons for Japan's persistently low inflation since the bursting of the Japanese bubble economy (low inflation conundrum). It is shown that Japan experienced a structural break from a high-growth period with relatively high inflation to a low-growth period with...

Persistent link: https://www.econbiz.de/10013353433

Effects of Precipitation on Food Consumer Price Inflation

Moessner, Richhild - 2022

We study how precipitation has affected food consumer price inflation (CPI), using dynamic panel estimation of food CPI Phillips curves across countries for 34 OECD member and candidate economies from 1985 to 2010 augmented with climate variables. We allow for nonlinear effects of precipitation...

Persistent link: https://www.econbiz.de/10013427747

Estimating Pass-Through Rates for the 2022 Tax Reduction on Fuel Prices in Germany

Dovern, Jonas; Frank, Johannes; Glas, Alexander; … - 2022

We analyze the effectiveness of the German tax reduction on fuel prices ('Tankrabatt') that was introduced for three months, starting on 1 June 2022. Using the synthetic control method to compare actual prices of gasoline and diesel to those in a counterfactual situation without the tax...

Persistent link: https://www.econbiz.de/10013427749

The Eurozone as an Inflation Target Zone

Della Posta, Pompeo; Tamborini, Roberto - 2022

In the revised monetary policy strategy of the European Central Bank (ECB), "price stability is best maintained by aiming for two per cent inflation over the medium term", with "symmetric commitment" to this target. "Symmetry means that the Governing Council considers negative and positive...

Persistent link: https://www.econbiz.de/10013470273

Inflation Persistence in Europe: The Effects of the Covid-19 Pandemic and of the Russia-Ukraine War

Caporale, Guglielmo Maria; Infante, Juan; Gil-Alaña, … - 2022

This note analyses the possible effects of the Covid-19 pandemic and of the Russia-Ukraine war on the degree of inflation persistence in both the euro zone and the European Union as a whole (EU27). For this purpose a fractional integration model is estimated, first using the full sample and then...

Persistent link: https://www.econbiz.de/10013470330

Is the Slope of the Euro Area Phillips Curve Steeper than It Seems? Heterogeneity and Identification

Schuffels, Johannes; Kool, Clemens; Lieb, Lenard; van … - 2022

Heterogeneity in Phillips Curve slopes among members of a monetary union can lead to downward biases to estimates of the union-wide slope in reduced form regressions. The intuition is that in a monetary union with heterogeneous regional Phillips Curve slopes, the central bank, aiming at...

Persistent link: https://www.econbiz.de/10013470361

Endogenous Product Adjustment and Exchange Rate Pass-Through

Freitag, Andreas; Lein, Sarah M. - 2022

We document how product quality responds to exchange rate movements and quantify the extent to which these quality changes affect the aggregate pass-through into export prices. We analyze the substantial sudden appreciation of the Swiss franc post removal of the 1.20-CHF-per-euro lower bound in...

Persistent link: https://www.econbiz.de/10014290027