RBNZ paper investigates changes to inflation expectations after oil price shocks
Findings suggest changes in expectations do not affect inflation outcomes
The sensitivity of inflation expectations to real oil prices "may have little policy relevance" in the US, according to a discussion paper published by the Reserve Bank of New Zealand (RBNZ).
Answering the paper's title, Do inflation expectations propagate the inflationary impact of real oil price shocks?: Evidence from the Michigan survey, author Benjamin Wong concludes they "only a play a minimal role".
"The results can claim that in an environment of benign inflation, movements in inflation
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