Index of Perceived Inflation or EU Consumer Surveys? An Assessment of Professor H. W. Brachinger's Approach

Intereconomics, Review of European Economic Policy, Vol. 41, 2006

10 Pages Posted: 6 Jul 2006

See all articles by Johannes Hoffmann

Johannes Hoffmann

Deutsche Bundesbank - Economics Department

Hans-Albert Leifer

Deutsche Bundesbank

Andreas Lorenz

Deutsche Bundesbank

Abstract

This paper discusses an index of perceived inflation developed by Brachinger. Brachinger's index is not based on a survey and measurement of consumers' price perception. It is a model calculation derived from a number of more or less plausible ad hoc assumptions. We find that the results of Brachinger's model calculations cannot be reconciled with the responses to the EU consumer surveys, which are the only direct indicators of consumers' "true" inflation perception.

Keywords: perceived inflation, euro cash changeover, CPI, Germany

JEL Classification: C43, D8, E31

Suggested Citation

Hoffmann, Johannes and Leifer, Hans-Albert and Lorenz, Andreas, Index of Perceived Inflation or EU Consumer Surveys? An Assessment of Professor H. W. Brachinger's Approach. Intereconomics, Review of European Economic Policy, Vol. 41, 2006, Available at SSRN: https://ssrn.com/abstract=912456

Johannes Hoffmann (Contact Author)

Deutsche Bundesbank - Economics Department ( email )

Wilhelm-Epstein-Strasse 14
60431 Frankfurt am Main
Germany
0049 69 9566 2320 (Phone)
0049 69 9566 4317 (Fax)

Hans-Albert Leifer

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Andreas Lorenz

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

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