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People’s Understanding of Inflation
Report

People’s Understanding of Inflation



Editorial Rating

8

Qualities

  • Comprehensive
  • Analytical
  • Hot Topic

Recommendation

Inflation and its obverse, deflation, are critical elements in the long-run dynamism of the US economy, because they affect individuals’ and businesses’ spending, saving, and investing. In this authoritative research analysis, academics Alberto Binetti, Francesco Nuzzi, and Stefanie Stantcheva examine how US consumers and businesses shape their views of prices and what impacts those views have on their financial decisions. This valuable report offers a robust assessment of stakeholder perceptions and insights on inflation.

Take-Aways

  • High inflation creates financial uncertainty for businesses and consumers in their purchasing and capital allocation decisions.
  • Political party affiliation plays an important role in how people regard inflation’s impact on the economy and on their finances.
  • Consumers oppose interest rate increases, but they support higher taxes on corporations and the wealthy.

About the Authors

Stefanie Stantcheva is a professor of economics at Harvard University, where Alberto Binetti and Francesco Nuzzi are PhD candidates.


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