Inflation Expectations over the Life Cycle under Rational Inattention
by Jessica Schultz Abstract This paper explores how people track inflation over their lifetimes while facing tradeoffs between attention and certainty. It first employs a flexible modification of the Recursive Least Squares Learning approach from Malmendier and Nagel (MN) (2016) to find that households place weight on each inflation observation in a hump-shaped pattern over […]
Inflation Volatility and Economic Growth: A Disaggregated Analysis
By Nicholas Becker Inflation volatility has been theorized to negatively affect real economic growth, but empirical analyses have returned somewhat mixed results. Constructing my own dataset of household group inflation rates by disaggregating and linking Consumer Expenditure Survey data with Consumer Price Index data, I analyze inflation volatility and economic growth from the ground-up. Calculating […]
