No. 75 - The Use of Italian Survey Data in the Analysis of the Formation of Inflation Expectations

by Ignazio Visco
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Survey-measured inflation expectations for Italy are considered in this paper. Their quality and accuracy are examined and the determinants of expected inflation investigated. In particular, a variant of the adaptive- regressive specification, with adjustment coefficients that reflect demand and uncertainty conditions, gives satisfactory results that confirm the conclusions of an earlier study on wholesale price expectations. As to the formation of consumer price expectations, the individuals surveyed seem basically to have tried to take advantage of the structural relationship between wholesale and consumer prices.

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  1. 31 October 1986
    No. 75 - The Use of Italian Survey Data in the Analysis of the Formation of Inflation Expectations
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