Cookies?
Library Header Image
LSE Research Online LSE Library Services

Measuring inflation expectations in interwar Britain

Lennard, Jason ORCID: 0000-0002-6700-8969, Meinecke, Finn and Solomou, Solomos (2022) Measuring inflation expectations in interwar Britain. Economic History Review. ISSN 0013-0117

[img] Text (The Economic History Review - 2022 - Lennard - Measuring inflation expectations in interwar Britain) - Published Version
Available under License Creative Commons Attribution Non-commercial.

Download (1MB)

Identification Number: 10.1111/ehr.13215

Abstract

What caused the recovery from the British Great Depression? A leading explanation – the ‘expectations channel’– suggests that a shift in expected inflation lowered realinterest rates and stimulated consumption and invest-ment. However, few studies have measured, or tested theeconomic consequences of, inflation expectations. In thispaper,wecollecthigh-frequencyinformationfromprimaryand secondary sources to measure expected inflation inthe United Kingdom between the wars. A high-frequencyvector autoregression suggests that inflation expectationswere an important source of the early stages of economicrecovery in interwar Britain.

Item Type: Article
Official URL: https://onlinelibrary.wiley.com/journal/14680289
Additional Information: © 2022 The Authors
Divisions: Economic History
Subjects: H Social Sciences > HC Economic History and Conditions
JEL classification: N - Economic History > N1 - Macroeconomics and Monetary Economics; Growth and Fluctuations > N14 - Europe: 1913-
E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E30 - General
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E60 - General
Date Deposited: 03 Oct 2022 17:30
Last Modified: 14 Jun 2024 20:48
URI: http://eprints.lse.ac.uk/id/eprint/116889

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics