Expected inflation, unexpected inflation, and relative price dispersion. An empirical analysis

Shmuel Kandel*, Aharon R. Ofer, Oded Sarig

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

Using inflation expectations extracted from index bond prices, we examine the relations between expected inflation, unexpected inflation and relative price dispersion in stable and volatile monetary regimes. We find that expected inflation is positively related to relative price dispersion in the high inflation period, and that inflation shocks are positively related to relative price dispersion in the low inflation period.

Original languageEnglish (US)
Pages (from-to)383-390
Number of pages8
JournalEconomics Letters
Volume37
Issue number4
DOIs
StatePublished - Dec 1991

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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