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 sequence in which this analysis is developed, in particular presenting the economics of unanticipated inflation before that of anticipatory inflation, corresponds to the temporal sequence of economic events during an inflation.
Armen Alchian's contribution to macroeconomics
where GY is the growth rate of real GNP, CVI is a measure of inflation uncertainty, SHOCKI is unanticipated inflation, ANTI is anticipated inflation,(5) computed as the difference between actual and unanticipated values, and [[mu].sub.t], is a white noise error term.
Monetary policy and inflation uncertainty in the United States and Germany
It has been advocated by Ansley (1979) and Weiss (1985) that reserve error misestimation is caused largely by unanticipated inflation in the costs of settling claims.
Property-liability insurer reserve errors: a theoretical and empirical analysis
The average rate of unanticipated inflation is -0.48 percent (t = -.92) for LIV and -1.04 percent (t = -1.96) for LEASTSQ.
Uncertain effects of money and the link between the inflation rate and inflation uncertainty
Parks [1978] found unanticipated inflation to be positively associated with movements in relative prices.
The effects of monetary instability on the extent of vertical integration
(These assumptions on Dln(y) and Dln(R) were tested by Rasche.) Instead of the price variable of equation (3), Rasche uses as a measure of unanticipated inflation the residuals from an ARIMA (0,1,1) model.
The empirical reliability of monetary aggregates as indicators: 1983-1987
The costs of inflation are associated with both anticipated and unanticipated inflation. (4)
A critique of proposals to raise the Fed's inflation target
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. Hence, the 'underweight' in bonds as an asset class, both in our strategic, as well as our tactical asset allocation recommendation."
Barclays recommends Developed Markets Equities
Unanticipated inflation is a risk that investors in any nominal instrument face.
Assessing Risk in Real Estate Investing, Pt. 2: Digging Deeper
Keywords: Anticipated inflation Unanticipated inflation Relative price variability Macroeconomic framework
HOW RELATIVE PRICE VARIABILITY IS RELATED TO UNANTICIPATED INFLATION AND REAL INCOME
Friedman [21] criticized this exploitation of the short-term inflation-unemployment trade-off, remarking that the temporary trade-off between inflation and unemployment "comes not from inflation per se, but from unanticipated inflation, which generally means, from a rising rate of inflation." However, there is no permanent trade-off; hence governments should not employ the policy to stimulate employment with inflation.
Phillips and wage curves: empirical evidence from Bosnia and Herzegovina
Unanticipated inflation occurs when people, businesses and governments make errors in their inflation forecasts.
TRANSMISSION MECHANISM OF MONETARY POLICY

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