Sticky-information in forming inflation expectations

Abstract

Inflation expectation plays an important role in macro-economy, and the stickiness of information is critical for the management of inflation expectations. This paper tries to provide supportive evidence of sticky-information in forming inflation expectations in three significant economies, i.e., China, Eurozone, and the United States. Based on the epidemiology model, our results show that the stickiness in China is smaller than that in Eurozone and the United States. (JEL: E31, E52, E58, D84)