Money Illusion, Inflationary Amplification, and Institutional Fragility: A Behavioral Framework of Inflation Perception

Abstract excerpt

<title>Abstract</title> <p> Why does disinflation often remain fragile even after a substantial decline in headline inflation? This paper studies inflation perception as a cognitive process in which individuals transform heterogeneous price experiences into a compressed aggregate belief. The analysis focuses on the role of salience and diagnostic expectations in shaping perceived inflation and generating persist...

Topics

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• Machine Learning
• Models, Economic
• Phenotype

Identifiers and source

Literature Corpus work

6d3f29a5-5143-5359-9ad2-1006f57eabf0

DOI

10.21203/rs.3.rs-9770522/v1