Carlo Pizzinelli says a better understanding of how consumers think helps policymakers better control inflation. (IMF photo)
While consumers' expectations of where prices are going are something that economists have been tracking for a long time, understanding how those expectations are formed provides valuable insight toward controlling inflation. New research by economists Carlo Pizzinelli (IMF), Peter Andre (Briq Institute), Christopher Roth (University of Cologne), and Johannes Wohlfart (University of Copenhagen) shows a surprising divide between what experts think and consumers believe drives inflation and other economic trends. Carlo Pizzinelli is the author of an article in the latest Finance and Development based on the study. In this podcast, Pizzinelli sits down with Journalist Rhoda Metcalfe to discuss how the collective consumer mind influences economic policy. Transcript
International Monetary Fund
Bruce Edwards produces the IMF podcast program. He's an award-winning audio producer and journalist who's covered armed conflicts, social unrest, and natural disasters from all corners of the world. He believes economists have an important role in solving the world's problems and aspires to showcase their research in every IMF podcast.
Rhoda Metcalfe is an independent journalist and audio producer. Her reporting on the armed conflict in Colombia in the late 90s, as well as her work in Egypt, Turkey and South Africa has won several awards. She now produces podcasts and radio features from Washington DC and is a regular contributor to the IMF Podcast program.