THE INFLATION EXPECTATIONS OF U.S. FIRMS: EVIDENCE FROM A NEW SURVEY

Yuriy Gorodnichenko and Bernardo Candia
Authors registered in the RePEc Author Service: Olivier Coibion

No 16161, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Introducing a new survey of U.S. firms’ inflation expectations, we document key stylized facts involving what U.S. firms know and expect about inflation and monetary policy. The resulting time series of firms’ inflation expectations displays unique dynamics, distinct from those of households and professional forecasters. By any typical definition of “anchored†expectations, the inflation expectations of U.S. managers appear far from anchored, much like those of households. And like households, U.S. managers are largely uninformed about recent aggregate inflation dynamics or monetary policy. These results complement existing evidence on firms’ inflation expectations from other countries and confirm that inattention to inflation and monetary policy is pervasive among U.S. firms as well.

Keywords: Expectations; Surveys; Anchoring; Rational inattention; Managers (search for similar items in EconPapers)
JEL-codes: E3 E4 E5 (search for similar items in EconPapers)
Date: 2021-05
References: Add references at CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: The inflation expectations of U.S. firms: Evidence from a new survey (2024)
Working Paper: The Inflation Expectations of U.S. Firms: Evidence from a New Survey (2021)
Working Paper: The Inflation Expectations of U.S. Firms: Evidence from a new survey (2021)
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