Compare long-run market expectations of inflation with a consumer survey measure of one-year-ahead inflation expectations. Starting with

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Compare long-run market expectations of inflation with a consumer survey measure of one-year-ahead inflation expectations. Starting with the graph from Data Exploration Problem 1, add as a second line the University of Michigan survey measure of inflation expectations (FRED code: MICH) Why might these measures differ systematically?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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