Events at CERGE-EI

Presenter: Thanatorn Chomkaew (CERGE-EI PhD Student)

Title: "How Do Household Revise Inflation Expectations After Unexpected Monetary Announcement? Evidence from the FRBNY Survey of Consumer Expectations."

Abstract: FED has emphasised the importance of anchoring firms and household inflation expectations, yet existing literature seems to find limited response from household inflation expectations to FED announcements. I therefore propose that a weak average level of household inflation expectation cannot tell whether the responses are muted or offsetting the heterogeneous direction of revisions. To address this, I empirically study within-person revision around the FOMC meeting. Specifically, this work compares revisions made by households interviewed shortly before versus after the FOMC meeting. Moreover, this paper proxies unexpected information from Fed announcements by High-frequency monetary policy surprises to further study whether households respond to larger unexpected information from the Fed. Thus, this paper aims to study how households revise inflation expectations after an FOMC meeting and in which direction. This proposal contributes to the literature on inflation expectations, belief updating, and the transmission of monetary policy.

Link to join online: https://cerge-ei.webex.com/cerge-ei/j.php?MTID=m05aeecd40d77cd925d33a2b028f3d852
Meeting number: 2743 690 5846
Meeting password: 258621