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ResearchPaper
2009

The camp view of inflation forecasts

Abstract (English)

Analyzing sample moments of survey forecasts, we derive disagreement and un- certainty measures for the short- and medium term inflation outlook. The latter provide insights into the development of inflation forecast uncertainty in the context of a changing macroeconomic environment since the beginning of 2008. Motivated by the debate on the role of monetary aggregates and cyclical variables describing a Phillips-curve logic, we develop a macroeconomic indicator spread which is assumed to drive forecasters? judgments. Empirical evidence suggests procyclical dynamics between disagreement among forecasters, individual forecast uncertainty and the macro-spread. We call this approach the camp view of inflation forecasts and show that camps form up whenever the spread widens.

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Notes

Publication license

Publication series

Hohenheimer Diskussionsbeiträge; 320

Published in

Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institut für Volkswirtschaftslehre (bis 2010)

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ISBN

Language
English

Publisher

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Classification (DDC)
330 Economics

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BibTeX

@techreport{Schmid2009, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5302}, author = {Schmid, Kai Daniel and Sauter, Oliver and Geiger, Felix et al.}, title = {The camp view of inflation forecasts}, year = {2009}, school = {Universität Hohenheim}, series = {Hohenheimer Diskussionsbeiträge}, }