Inflation Expectations, Saving Plans, and Household Savings - Evidence from Panel Data

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Date and Time: 
Thursday, April 2, 2015
12:00 pm – 1:00 pm
Speaker: 
Nathanael Vellekoop
Goethe University Frankfurt and SAFE
Abstract: 

Recent studies examine how households' inflation expectations influence households' willingness to buy durables. Using longitudinal data from a representative survey for The Netherlands, I estimate not only the relation between households inflation expectations and willingness to save, but also on several measures of actual savings behavior. Other relevant outcomes are the share of liquid assets of a household and car purchases. Moreover, I examine within-person measures of uncertainty over future inflation to examine the role of inflation uncertainty on consumption over the business cycle.