Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/260767 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 9637
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Using a new consumer survey dataset, we show that macroeconomic preferences affect expectations and economic decisions through different channels. While household expectations are on average inversely related to preferences, households with the same inflation or interest rate expectations can differently assess whether the level of the corresponding variable is appropriate or too high/too low. This `hidden heterogeneity' in expectations is correlated with sociodemographic characteristics and affects durable spending and saving decisions. We also show that the variation in inflation preferences can be explained with risk preferences. Overall, this adds a new dimension to the definition of anchored expectations.
Subjects: 
macroeconomic expectations
monetary policy perceptions
inflation and interest rate preferences
risk preferences
survey microdata
JEL: 
E31
E52
E58
D84
Document Type: 
Working Paper
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