Inflationary household uncertainty shocks

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dc.contributor Bank of Finland
dc.contributor.author Ambrocio, Gene
dc.date.accessioned 2020-04-28T09:20:44Z
dc.date.available 2020-04-28T09:20:44Z
dc.date.issued 2020
dc.identifier.isbn 978-952-323-324-9
dc.identifier.issn 1456-6184
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/17014
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.rights https://helda.helsinki.fi/bof/copyright
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
dc.series.name Bank of Finland Research Discussion Papers
dc.series.year 2020
dc.series.number 5/2020
dc.series.sortingnumber 0005
dc.date.publication 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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