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Determinants of Inflation Expectations in the Euro Area

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Euro area inflation has been rising strongly in the wake of the COVID-19 pandemic, giving rise to concerns that there could be second-round effects, with higher inflation leading to higher… Click to show full abstract

Euro area inflation has been rising strongly in the wake of the COVID-19 pandemic, giving rise to concerns that there could be second-round effects, with higher inflation leading to higher inflation expectations, which in turn lead to higher inflation. This could result in more persistent rises in inflation.

Keywords: determinants inflation; euro area; inflation; inflation expectations; higher inflation

Journal Title: Intereconomics
Year Published: 2022

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