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Heterogeneidad y Racionalidad en las Expectativas de Inflación: Evidencia desagregada para República Dominicana
[Heterogeneity and Rationality of Inflation Expectations: Disaggregated Evidence for the Dominican Republic]

Author

Listed:
  • Jiménez Polanco, Miguel Alejandro
  • Lopez Hawa, Nabil

Abstract

Inflation expectations play a key role for a central bank under an inflation targeting regime. This paper analyses the inflation expectations of economic agents answering the Survey of Macroeconomic Expectations run by the Central Bank of the Dominican Republic (BCRD). Data is dis-aggregated by groups: academics, bankers, consultants, international organizations and firms. The main findings show: a) a learning process seen by a reduction of forecasting errors when predicting future inflation; b) heterogeneity of inflation expectations among different groups; and by last, c) data fails rationality tests related to rational and adaptive expectations; results suggest partial use of public information and a significant bias by agents.

Suggested Citation

  • Jiménez Polanco, Miguel Alejandro & Lopez Hawa, Nabil, 2014. "Heterogeneidad y Racionalidad en las Expectativas de Inflación: Evidencia desagregada para República Dominicana [Heterogeneity and Rationality of Inflation Expectations: Disaggregated Evidence for ," MPRA Paper 75912, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:75912
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Inflation Targeting; Rational Expectations; Adaptive Expectations; Surveys; Inflation Expectations.;
    All these keywords.

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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