Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296595 
Year of Publication: 
2024
Series/Report no.: 
MAGKS Joint Discussion Paper Series in Economics No. 08-2024
Publisher: 
Philipps-University Marburg, School of Business and Economics, Marburg
Abstract: 
Using representative household surveys conducted during the COVID-19 pandemic in two emerging economies, Thailand and Vietnam, we examine the relationship between inflation expectations and consumption. In both countries, our results show an insignificant relationship between expected inflation and durable consumption intentions. In addition, we rigorously test whether the null overall effect of inflation expectations on consumption is due to heterogeneity across different groups of households. However, we cannot reject the homogeneity restriction and conclude that we find no evidence to support either the widely accepted intertemporal optimisation theory or the competing 'stagflationary' view of consumption.
Subjects: 
Inflation Expectation
Consumption
COVID-19
Thailand
Vietnam
JEL: 
E62
E71
D12
D83
H31
Document Type: 
Working Paper

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