Inflation Narratives

Research output: Working paper › Research

Standard

Inflation Narratives. / Andre, Peter; Haaland, Ingar; Roth, Christopher; Wohlfart, Johannes.

2021.

Research output: Working paper › Research

Harvard

Andre, P, Haaland, I, Roth, C & Wohlfart, J 2021 'Inflation Narratives'.

APA

Andre, P., Haaland, I., Roth, C., & Wohlfart, J. (2021). Inflation Narratives. CEBI Working Paper Series Vol. 21 No. 18

Vancouver

Andre P, Haaland I, Roth C, Wohlfart J. Inflation Narratives. 2021 Nov 25.

Author

Andre, Peter ; Haaland, Ingar ; Roth, Christopher ; Wohlfart, Johannes. / Inflation Narratives. 2021. (CEBI Working Paper Series; No. 18, Vol. 21).

Bibtex

@techreport{ef28ea9d55564ab7875235f61045349a,
title = "Inflation Narratives",
abstract = "We provide evidence on the stories that people tell to explain a historically notable rise in inflation using samples of experts, U.S. households, and managers. We document substantial heterogeneity in narratives about the drivers of higherinflation rates. Experts put more emphasis on demand-side factors, such as fiscal and monetary policy, and on supply chain disruptions. Other supply-side factors, such as labor shortages or increased energy costs, are equally prominent acrosssamples. Households and managers are more likely to tell generic stories related to the pandemic or mismanagement by the government. We also find that households and managers expect the increase in inflation to be more persistent thanexperts. Moreover, narratives about the drivers of the inflation increase are strongly correlated with beliefs about its persistence. Our findings have implications for understanding macroeconomic expectation formation.",
keywords = "Faculty of Social Sciences, Narratives, Inflation, Beliefs, Macroeconomics, Fiscal policy, monetary policy",
author = "Peter Andre and Ingar Haaland and Christopher Roth and Johannes Wohlfart",
year = "2021",
month = nov,
day = "25",
language = "English",
series = "CEBI Working Paper Series",
number = "18",
type = "WorkingPaper",

}

RIS

TY - UNPB

T1 - Inflation Narratives

AU - Andre, Peter

AU - Haaland, Ingar

AU - Roth, Christopher

AU - Wohlfart, Johannes

PY - 2021/11/25

Y1 - 2021/11/25

N2 - We provide evidence on the stories that people tell to explain a historically notable rise in inflation using samples of experts, U.S. households, and managers. We document substantial heterogeneity in narratives about the drivers of higherinflation rates. Experts put more emphasis on demand-side factors, such as fiscal and monetary policy, and on supply chain disruptions. Other supply-side factors, such as labor shortages or increased energy costs, are equally prominent acrosssamples. Households and managers are more likely to tell generic stories related to the pandemic or mismanagement by the government. We also find that households and managers expect the increase in inflation to be more persistent thanexperts. Moreover, narratives about the drivers of the inflation increase are strongly correlated with beliefs about its persistence. Our findings have implications for understanding macroeconomic expectation formation.

AB - We provide evidence on the stories that people tell to explain a historically notable rise in inflation using samples of experts, U.S. households, and managers. We document substantial heterogeneity in narratives about the drivers of higherinflation rates. Experts put more emphasis on demand-side factors, such as fiscal and monetary policy, and on supply chain disruptions. Other supply-side factors, such as labor shortages or increased energy costs, are equally prominent acrosssamples. Households and managers are more likely to tell generic stories related to the pandemic or mismanagement by the government. We also find that households and managers expect the increase in inflation to be more persistent thanexperts. Moreover, narratives about the drivers of the inflation increase are strongly correlated with beliefs about its persistence. Our findings have implications for understanding macroeconomic expectation formation.

KW - Faculty of Social Sciences

KW - Narratives

KW - Inflation

KW - Beliefs

KW - Macroeconomics

KW - Fiscal policy

KW - monetary policy

M3 - Working paper

T3 - CEBI Working Paper Series

BT - Inflation Narratives

ER -

ID: 287823599