TY - BOOK ID - 136204572 TI - Biases in Survey Inflation Expectations: Evidence from the Euro Area AU - Chen, Jiaqian. AU - Gornicka, Lucyna. AU - Zdarek, Vaclav. PY - 2022 SN - 9798400224461 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Spain KW - Macroeconomics KW - Economics: General KW - Inflation KW - Banks and Banking KW - Industries: Energy KW - Economic Theory KW - Forecasting KW - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) KW - Money and Interest Rates: General KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Expectations KW - Speculations KW - Price Level KW - Deflation KW - Interest Rates: Determination, Term Structure, and Effects KW - Macroeconomics: Production KW - Agriculture: Aggregate Supply and Demand Analysis KW - Prices KW - Forecasting and Other Model Applications KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Finance KW - Petroleum, oil & gas industries KW - Economic theory & philosophy KW - Economic Forecasting KW - Zero lower bound KW - Financial services KW - Oil production KW - Production KW - Supply shocks KW - Economic theory KW - Economic forecasting KW - Currency crises KW - Informal sector KW - Economics KW - Interest rates KW - Petroleum industry and trade KW - Supply and demand UR - https://www.unicat.be/uniCat?func=search&query=sysid:136204572 AB - This paper documents five facts about inflation expectations in the euro area. First, individual inflation forecasts overreact to individual news. Second, the cross-section average of individual forecasts of inflation underreact to shocks initially, but overreacts in the medium term. Third, disagreement about future inflation increases in response to news when the current inflation is high, and declines when inflation is low, consistent with a zero lower bound of expectations. Fourth, overreaction of individual inflation forecasts to news increased after the global financial crisis (GFC). Fifth, the reaction of average expectations (and of actual inflation) to shocks became more muted post-GFC in the euro area, but not in the U.S. ER -