04733cam a22007337i 4500 on1226319643 OCoLC 20260430103235.0 m o d f cr cn||||||||| 201209t20202020oncd ob f000 0 eng NLC eng rda NLC NLC CELBN 20200414097 can (OCoLC)1226319643 lac n-cn--- n-us--- 339.4 15 cci1icc lacc FB3-5/2020-52E-PDF NLCC Bellemare, Charles, author. The determinants of consumers' inflation expectations : evidence from the US and Canada / by Charles Bellemare, Rolande Kpekou Tossou and Kevin Moran. [Ottawa] : Bank of Canada = Banque du Canada, 2020. ©2020 1 online resource (ii, 36 pages). text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-52 Distributed by the Government of Canada Publishing and Depository Services Program (Weekly acquisitions list 2020-49). "Last updated: November 30, 2020." Includes bibliographical references. Unrestricted online access. Unrestricted online access. star CaOONL Electronic monograph in PDF format. 'We propose and estimate a dynamic and individual model of expectations formation that links individual consumers' inflation expectations to their own lagged forecasts as well as proxies for the rational expectation forecasts. The model builds on the existing rational inattention literature and extends it in several dimensions. We explicitly model the expectations updating rule which consumers use to incorporate new information in their experience and take seriously heterogeneity in inflation expectations extensively documented in the literature. We estimate the model using data from two important new surveys -- the Federal Reserve Bank of New York's Survey of Consumer Expectations and the Bank of Canada's Canadian Survey of Consumer Expectations. We find that inflation expectations appear to correlate more strongly to measures of rational expectations forecasts in Canada than in the US, and conversely less to lagged expectations. More specifically, the median respondent assigns overall weights of roughly 75% to proxies for the rational expectation forecasts and 25% to lagged expectations in Canada, while these weights are around 50-50 for the US. We show that these differences in weights are not explained by differences in the characteristics of their stand-in consumers. Given this finding, one candidate explanation could be related to the explicit inflation target in Canada in comparison to the dual mandate in the US'--Abstract, page ii. Inflation (Finance) Canada. Inflation (Finance) United States. Consumers Research Canada. Consumers Research United States. Inflation Canada. Inflation États-Unis. Consommateurs Recherche Canada. Consommateurs Recherche États-Unis. Consumer price index. iptcnc Economy. iptcnc Expected value. iptcnc Forecasting. iptcnc Inflation. iptcnc Inflation targeting. iptcnc Likelihood function. iptcnc Macroeconomics. iptcnc Monetary policy. iptcnc Nominal rigidity. iptcnc Electronic books. Bank of Canada, issuing body. Staff Working Paper (Bank of Canada) ; 2020-52 Bibliothèque et Archives Canada / Library and Archives Canada https://epe.lac-bac.gc.ca/100/201/301/weekly_acquisitions_list-ef/2020/20-49/publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-52-eng.pdf Government of Canada Publications / Publications du gouvernement du Canada http://publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-52-eng.pdf http://www.deslibris.ca/ID/10105568 For Subscription see www.canadianelectroniclibrary.ca desLibris e-book: http://api.deslibris.ca/api/cover/getcover?id=10105568&thumbnail=false Medium cover image: http://api.deslibris.ca/api/cover/getcover?id=10105568&thumbnail=true Thumbnail cover image: Canadian Electronic Library CELB 10105568 C0 NLC 38180 38180