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CONSUMERS' INFLATION EXPECTATIONS AND MONETARY POLICY IN EUROPE
Author(s) -
Berk Jan Marc
Publication year - 2002
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1093/cep/20.2.122
Subject(s) - economics , inflation (cosmology) , monetary policy , inflation targeting , monetary economics , real interest rate , eu countries , interest rate , international economics , macroeconomics , european union , physics , theoretical physics
This article analyses the effects of monetary policy decisions on inflation expectations of European consumers. Using a novel approach, I convert qualitative survey responses of consumers in various European countries into a quantitative time series of inflation expectations. I investigate the effects of unanticipated movements in interest rates and inflation on inflation expectations across European countries. I inter alia seek to explore whether the reaction differs of consumers in countries with more credible central banks than those in less credible countries.