-
Hall of mirrors: How consumers think about inflation
With inflation rising to levels unseen in decades, households across the world are asking themselves how much more they can expect to pay for gasoline, groceries, and other necessities. Their answers may help them make important personal financial decisions. Should they go ahead and buy that new refrigerator, rather than wait until later and risk seeing the price go up? Should they ask their boss for a raise to make up for the loss of purchasing power? The answers won’t affect just individual households but the economy as a whole. The reason: central bankers and academic economists view inflation partly as a ... (full story)