CORDIS Project
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This project explores how consumer inflation expectations influence business cycles, shifting the focus from firm pricing to household perceptions. By analyzing consumer behavior and market prices, it aims to develop a new theoretical framework that explains the persistence of inflation and its impact on economic activ…
The Eurozone is currently facing a sudden and sharp increase in inflation.
Whether inflationary pressures will persist and what will be the cost of an eventual monetary tightening crucially depends on inflation expectations.
The aim of this project is to provide theoretical and empirical support to a new channel, through which inflation may persistently shift business activity.
The project sheds new light on how market prices influence consumers perceived inflation and how this may allow for the…
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