Economic Progress

Why people's views on inflation matter

Traders look at a stock board at a private stock brokering house in Colombo, October 5, 2009. Sri Lanka's stock market hit record high on Monday led by investor hopes of strong post-war economic growth amid declining interest rates and easing inflation, analysts and traders said. REUTERS/Andrew Caballero-Reynolds (SRI LANKA BUSINESS) - GM1E5A5193F01

If the general public doesn’t believe the historic rate of inflation, the system of inflation targeting falls down. Image: REUTERS/Andrew Caballero-Reynolds

Jannie Rossouw
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Economic Progress

Figure 1: Inflation perceptions of respondents.
Image: The Conversation
Figure 2: Inflation perceptions of respondents.
Image: The Conversation
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Related topics:
Economic ProgressFinancial and Monetary SystemsInequality
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