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KDI 경제정보센터

ENG
  • Economic

    Information

    and Education

    Center

최신자료
Inflation Preferences
CEPR
2024.04.22
We document novel survey-based facts on preferred long-run inflation rates among U.S. consumers. Consumers on average prefer a 0.20% annual inflation rate, considerably below the Federal Reserve’s 2% target. Inflation preferences not only correlate with demographic and socioeconomic characteristics, but also with economic reasoning. Based on a randomized control trial, we ask whether narratives based on economic models can alter inflation preferences, and find a significant causal effect for the negative real wage effects of inflation. These results inform how central bank communication can shape the public‘s inflation preferences.