New Booth Study Links Inflation Projections to Consumer Purchases
According to new faculty research from the University of Chicago Booth School of Business, when consumers expect higher inflation rates they become more willing to spend on the spot. According to a press release on the Chicago Booth website about the new research, households expecting an increase in inflation were more likely to spend on consumer durable goods such as like automobiles, electronics and other household goods.
“Central banks around the world try to raise inflation expectations via unconventional monetary policy measures to increase spending. The bond-buying program of the European Central Bank is the most recent example in a long line,” Chicago Booth Professor Michael Weber said. Weber co-authored the paper, titled “Inflation Expectations and Consumption Expenditure,” with Francesco D’Acunto of the Haas School of Business, and Daniel Hoang of the Karlsruhe Institute of Technology. Continue reading…
Asset Pricing Paper by Booth Prof. Wins Top Conference and Doctoral Prizes
Michael Weber, assistant professor of Finance and Neubauer Family Faculty Fellow at the University of Chicago Booth School of Business, won a pair of awards from the European Finance Association. His paper, titled “Nominal Rigidities and Asset Pricing,” was named UBS Best Conference Paper and European Finance Association Best Doctoral Student Conference Paper. This made history as it was the first time a doctoral paper won the Conference Paper Prize. Continue reading…
