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Measuring Household Inflation Perceptions and Expectations: The Effect of Guided vs Non-Guided Inflation Questions

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  • Hayo, Bernd
  • Méon, Pierre-Guillaume

Abstract

An experiment using a representative survey of the German population shows that letting respondents report a number rather than asking them to choose from a list of predefined ranges lowers the response rate for both perceived past and expected inflation and decreases (increases) reported past (expected) inflation. Income, education, gender, objective and subjective knowledge about monetary policy, and political affiliation affect the effect's size but not its sign. East and West German respondents who were 15 or older when the Berlin Wall fell have reactions different from those who were younger at that time, which supports the ‘impressionable years’ hypothesis based on different inflation experiences.

Suggested Citation

  • Hayo, Bernd & Méon, Pierre-Guillaume, 2023. "Measuring Household Inflation Perceptions and Expectations: The Effect of Guided vs Non-Guided Inflation Questions," Journal of Macroeconomics, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:jmacro:v:78:y:2023:i:c:s0164070423000587
    DOI: 10.1016/j.jmacro.2023.103558
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    More about this item

    Keywords

    Inflation perception; inflation expectation; survey question design; Germany; household survey; impressionable years hypothesis;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • Z1 - Other Special Topics - - Cultural Economics

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