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Home » Publications » Academic journals » Economics journals » EconSouth » March 2012 »
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    "Econ 101: Inflation Expectations." EconSouth. Federal Reserve Bank of Atlanta. 2012. HighBeam Research. 23 Apr. 2018 <https://www.highbeam.com>.

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    "Econ 101: Inflation Expectations." EconSouth. 2012. HighBeam Research. (April 23, 2018). https://www.highbeam.com/doc/1G1-288980698.html

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    "Econ 101: Inflation Expectations." EconSouth. Federal Reserve Bank of Atlanta. 2012. Retrieved April 23, 2018 from HighBeam Research: https://www.highbeam.com/doc/1G1-288980698.html

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Econ 101: Inflation Expectations

EconSouth
EconSouth

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March 22, 2012 | Copyright
Copyright Federal Reserve Bank of Atlanta. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights or concerns about this content should be directed to Customer Service.
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    <a href="https://www.highbeam.com/doc/1G1-288980698.html" title="Econ 101: Inflation Expectations | HighBeam Research">Econ 101: Inflation Expectations</a>

Inflation expectations are a critical component of the inflation outlook and, ultimately, they play a role in achieving price stability. But our understanding of inflation expectations is limited, in part as a consequence of imperfect measurement.

[ILLUSTRATION OMITTED]

Simply said, inflation expectations are the rate at which individu als, businesses, and investors think the general prices of goods and services will rise. Businesses' and individuals' expectations of inflation affect every decision they make about spending and investing. The price a firm sets for its goods or services, an individu al's decision to purchase a new car or home and the wage they demand from employers, how much businesses and individuals put into savings--inflation expectations affect all of them. …


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