January 25, 2023

Maritta Paloviita on medium-term inflation expectations

How responsive are consumers' medium-term inflation views to changes in short-term inflation expectations?

Maritta Paloviita works as a senior advisor at the Bank of Finland. She sat down for an interview at the 2023 AEA poster session to talk about how consumers change their medium-term inflation views in response to changes in short-term inflation expectations. She highlights the importance of trust in the central bank and financial literacy for understanding this relationship.