@TechReport{dp-719,
  author   = {Nghiem, Giang and Dräger, Lena and Dalloul, Ami},
  astring  = {Giang Nghiem, Lena Dräger, Ami Dalloul},
  title    = {Anchoring Households' Inflation Expectations when Inflation is High},
  month    = {October},
  year     = {2024},
  pages    = {65},
  number   = {719},
  size     = {1633},
  language = {en},
  keywords = {anchoring of inflation expectations, central bank communication, survey experiment, randomized controlled trial (RCT)},
  jelclass = {E52, E31, D84},
  abstract = {This paper explores communication strategies for anchoring households' medium-term inflation expectations in a high inflation environment. We conducted a survey experiment with a representative sample of 4,000 German households at the height of the recent inflation surge in early 2023, with information treatments including a qualitative statement by the ECB president and quantitative information about the ECB's inflation target or projected inflation. Inflation projections are most effective, but combining information about the target with a qualitative statement also significantly improves anchoring. The treatment effects are particularly pronounced among respondents with high financial literacy and high trust in the central bank.}
}