Past Inflation Haunts Future Expectations: Experience-Based Model Unveiled
May 20, 2025
May 20, 2025
WASHINGTON, May 20 (TNSLrpt) -- A new working paper from the Inter-American Development Bank (IDB) suggests that individual experiences with inflation play a significant role in shaping aggregate inflation expectations, leading to sluggish economic responses and posing challenges for central bank policy. The research highlights that the "inflation memories" of different generations can profoundly influence future economic dynamics.
The paper, "Aggregate Implications o . . .
The paper, "Aggregate Implications o . . .