Whose Expectations Augment the Phillips Curve?
7 Pages Posted: 6 Jun 2016
Date Written: July 7, 2015
This letter uses consumer survey data to estimate expectations-augmented Phillips curves with inflation expectations disaggregated by socioeconomic and demographic groups. The inflation expectations of high-income, college-educated, male, and working-age people play a larger role in inflation dynamics than do the expectations of other groups of consumers or of professional forecasters.
Keywords: inflation, heterogeneous expectations, Phillips curve
JEL Classification: E3, E5, D1
Suggested Citation: Suggested Citation