Inflation expectations can be a self-fulfilling prophecy
In a commentary, SMU Assistant Professor of Finance (Education) Aurobindo Ghosh, SMU postgraduate student and Research Assistant for the SInDEx Project Muskan Bagrodia and International Monetary Fund Economic Research Assistant Khyati Chauhan weighed in on why inflation expectations matter as much a...
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Format: | text |
Language: | English |
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Institutional Knowledge at Singapore Management University
2022
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Online Access: | https://ink.library.smu.edu.sg/lkcsb_research/7454 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8453/viewcontent/20220830_CNAOnline_Singapore_Commentary__1_.pdf |
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Institution: | Singapore Management University |
Language: | English |
Summary: | In a commentary, SMU Assistant Professor of Finance (Education) Aurobindo Ghosh, SMU postgraduate student and Research Assistant for the SInDEx Project Muskan Bagrodia and International Monetary Fund Economic Research Assistant Khyati Chauhan weighed in on why inflation expectations matter as much as economic data. They discussed how inflation expectations can be a self-fulfilling prophecy, and shared the key takeaways of the quarterly DBS-Sim Kee Boon Institute’s Singapore Index of Inflation Expectations (DBS-SKBI SInDEx) survey. They concluded that effective communication on inflation control measures, in addition to credible policy decisions, will help consumers feel assured and refrain from basing purchasing decisions on fear or speculation. |
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