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How do households respond to expected inflation? : an investigation of transmission mechanisms / by Janet Hua Jiang, Rupal Kamdar, Kelin Lu and Daniela Puzzello.FB3-5/2024-44E-PDF

"We disentangle the channels through which inflation expectations affect household spending. We conduct a survey featuring hypothetical scenarios that generate a controlled increase in inflation expectations. For 74% of households, current spending is unresponsive, typically due to fixed budget plans or irrelevance of inflation expectations. About 20% of households reduce spending, often citing wealth effects, nominal income rigidity, and inflation hedging. Only 6% increase spending, mostly due to intertemporal substitution or stockpiling"--Abstract, page ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.950388&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleHow do households respond to expected inflation? : an investigation of transmission mechanisms / by Janet Hua Jiang, Rupal Kamdar, Kelin Lu and Daniela Puzzello.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2024-44
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • ISSN assigned to different series.
  • "Last updated: November 8, 2024."
  • Includes bibliographical references (pages 40-44).
  • Includes abstract in French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, 2024.
  • ©2024
Author / Contributor
  • Jiang, Janet Hua, author.
Description1 online resource (ii, 76, 20 pages) : graphs.
Catalogue number
  • FB3-5/2024-44E-PDF
Subject terms
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