Forming Opinions on Perceived and Expected Inflation. A View by Behavioural Economics Cover Image

Formovanie názorov na pociťovanú a očakávanú infláciu. Pohľad behaviorálnej ekonómie
Forming Opinions on Perceived and Expected Inflation. A View by Behavioural Economics

Author(s): Vladimír Baláž
Subject(s): Economy
Published by: Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: perceived inflation; inflation expectations; behavioural economics

Summary/Abstract: This paper analyses formation of consumer opinions on perceived and expected inflation in the Euro area and selected transition economies in 1985 – 2008. Selected social and demographic groups accounted for their own patterns of price perception and forecasting. These patterns repeated in all countries observed. Consumer’s sense of his/her familiarity and competence regarding the price development were main factors in evaluation of inflation rates by knowled-geable individuals and proved useful, when estimating actual price growth. Fa-miliarity and competence, however, misled when estimating future price growth.

  • Issue Year: 57/2009
  • Issue No: 06
  • Page Range: 568-586
  • Page Count: 19
  • Language: Slovak