Inflationary household uncertainty shocks

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dc.contributor Bank of Finland Ambrocio, Gene 2020-04-28T09:20:44Z 2020-04-28T09:20:44Z 2020
dc.identifier.isbn 978-952-323-324-9
dc.identifier.issn 1456-6184
dc.description.abstract I construct a novel measure of household uncertainty based on survey data for European countries. I show that household uncertainty shocks are not universally like negative demand shocks. Notably, household uncertainty shocks are largely inflationary in Europe. These results lend support to a pricing bias mechanism as an important transmission channel. A comparison of results across countries suggest that demographics and factors related to average markups along with monetary policy play a role in the transmission of household uncertainty to inflation. I develop an Overlapping Generations New Keynesian model with Deep Habits to rationalize these results.
dc.format.extent 61
dc.language.iso ENG
dc.subject Eurooppa
dc.subject.other uncertainty
dc.subject.other inflation
dc.subject.other household expectations
dc.subject.other demographics
dc.subject.other deep habits
dc.title Inflationary household uncertainty shocks
dc.type Paper
dc.identifier.urn URN:NBN:fi:bof-202004282092
dc.subject.jel D84
dc.subject.jel E20
dc.subject.jel E30
dc.subject.jel E71 Bank of Finland Research Discussion Papers
dc.series.year 2020
dc.series.number 5/2020
dc.series.sortingnumber 0005 24.4.2020
dc.subject.yso inflaatio
dc.subject.yso epävarmuus
dc.subject.yso odotukset
dc.subject.yso kotitaloudet (organisaatiot)
dc.subject.yso hinnat
bof-internal.includedInCRIS 1
dc.type.okm D4

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