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Carlo Pizzinelli on How Consumers Chart Inflation

September 8, 2022

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

Carlo Pizzinelli is an economist in the IMF Research Department.