ABSTRACT
Inflation expectations are an important variable in the modern macroeconomic analysis framework. In particular, the micro-based New Keynesian Phillips curve model developed in recent years highlights the impact of inflation expectations on real inflation. The problem of inflation expectations management has always been the focus of general concern, and relevant theoretical research and applied research have yielded rich results. This chapter focuses on the formation mechanism of the third type of inflation expectations, namely the public inflation expectations in reality. It studies media opinion, public expectations, and the dynamic mechanism of China’s inflation in a combined manner, and innovatively differentiates the tone of media coverage. Many statistical measurement methods are available for inflation expectations, including rational expectations, adaptive expectations, and multivariate dynamic model prediction.
