Tech Report Number

1999-002

Abstract

Cross-section dispersion of expected inflation is often explained by differences in information sets across agents, but there is little empirical evidence attesting to that. The purpose of this paper is to examine whether dispersion in consumer forecasts of inflation is generated by factors such as relative price observations, different perceptions of monetary policy, and personal characteristics. We use unique data from Bulgaria that allow us to examine such effects at the micro level.

Keywords

Price Level, Inflation, Deflation, Perceptions, Expectations

Date of this Version

1999

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