A new index of perceived inflation: Assumptions, method, and application to Germany

摘要: After the introduction of Euro notes and coins in January 2002, throughout Economic Monetary Union member countries a substantial discrepancy was evident between inflation as measured by official consumer price indices (CPI) that perceived general public. The starting point this paper is German case. First, public controversy Germany after changeover sketched. Then conventional approaches to are reviewed including many studies published Federal Statistical Office well balance generated within EU Consumer Survey. In main part paper, novel approach measuring developed, Index Perceived Inflation (IPI). hypotheses underlying index presented. Then, IPI derived. forth section applied data. time series for from 1996 through 2005 shows particularly high around coins. fifth perception critically reviewed. closes with conclusion on insights gained computation IPI.