2010/06/01 by Wändi Bruine de Bruin, WÄNDI BRUINE de BRUIN, WILBERT VANDERKLAAUW +8
Business, Management and Accounting · Decision Sciences · Economics, Econometrics and Finance · #Decision-Making and Behavioral Economics #Economic growth #Economic stability #Economics #Finance #Financial Literacy, Pension, Retirement Analysis #Financial literacy #Housing Market and Economics #Inflation (cosmology) #Inflation rate #Interest rate #Literacy #Macroeconomics #Monetary economics #Rational expectations
paper · pdf · doi:10.1111/j.1745-6606.2010.01174.x
crossref issued 2010/06/01 · crossref published 2010/06/01 · crossref published-online 2010/06/01 · crossref published-print 2010/06/01 · openalex publication_date 2010/06/01 · crossref created 2010/06/02 · crossref deposited 2023/09/11 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/03 · crossref indexed 2026/08/03
When financial decisions have consequences beyond the immediate future, individuals' economic success may depend on their ability to forecast the rate of inflation. Higher inflation expectations have been reported by individuals who are female, poorer, single and less educated. Our results suggest that these demographic differences in inflation expectations may be partially explained by variations in expectation formation and financial literacy. Specifically, higher inflation expectations were reported by individuals who focused more on how to cover their future expenses and on prices they pay (rather than on the US inflation rate) and by individuals with lower financial literacy.