unanticipated inflation

unanticipated inflation

the future INFLATION rate in a country that is not generally expected by business people, trade union officials and consumers, and thus takes them by surprise. Unanticipated inflation is not incorporated in the current prices set for products, wage rates agreed for workers and asset values, unlike ANTICIPATED INFLATION, and thus is more painful in its effects. See RISK AND UNCERTAINTY.
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The costs of inflation are associated with both anticipated and unanticipated inflation.
Traditionally, the biggest risk for an investor choosing to lend to governments or companies over a longer time frame, rather than opting for a series of short term securities, is the threat of unanticipated inflation.
Results show that relative price variability is determined mainly by supply factors as reflected by unanticipated inflation.
Unanticipated inflation occurs when people, businesses and governments make errors in their inflation forecasts.
He said the commodity futures offer insurance against the periods of unanticipated inflation besides it would keep the participants aware of happenings in the commodities world as it now increasingly affects all other areas of economic activity.
Second, regarding unanticipated inflation, we find that a negative long-run effect coexists with a positive short-run effect on real stock returns.
Unanticipated inflation has both redistributive consequences and negative effects on growth.
Contents Introduction Inflation Defined Causes of Inflation The Economic Costs of Inflation Inflation Costs in a Fully Indexed Economy Inflation Costs in a Partially Indexed Economy Inflation Anticipated Inflation Unanticipated Inflation and Uncertainty Economic Costs of Inflation: Summary The Measurement of Inflation Changes in the Prices of Goods and Services Some Component Parts of the CPI The Underlying or Core Rate of Inflation Conclusion
Unanticipated inflation merely redistributes output.
The work of Cukierman [1979] and Hercowitz [1981] has demonstrated that the unanticipated inflation rate is the most statistically significant explanatory variable for RPV.
And how did City Hall explain the unanticipated inflation of this particular twice-told tale?
This literature indicates that, in general, the extent to which wages are indexed to unanticipated inflation rises as aggregate demand variability increases relative to aggregate supply variability.