Demographic differences in inflation expectations: what do they really mean?
Abstract: It has often been reported that different demographic groups show persistent differences in their inflation expectations. Some reasonable explanations have been suggested, but most have failed to fully explain these apparent differences. We argue that the demographic differences have been overstated by using the mean to describe differences across demographic groups. When we use the median to describe inflation expectations, we find little meaningful difference across demographic groups.
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Commentary
Publication Date: 2011
Issue: MayOrder Number: 7