Working papers:
Net Zero and Inflation Expectations: the Role of Monetary and Fiscal Policies
with Pei Kuang, Li Tang and Yao Yao, Paper Download SSRN
Journal of Economic Behavior and Organization, revise and resubmit
This paper investigates the impact of the UK net zero transition on household inflation expectations using a randomized survey experiment with 2,451 UK participants. We identify the causal effects of net-zero transition scenarios and policies on inflation expectations over different horizons. Our results show that both ETS cap reductions and green subsidies raise short-term inflation expectations while clear central bank communication can effectively manage the inflation expectations through anchoring mechanism.
Work in progress:
We study how inflation shapes household house price expectations through the lens of inflation persistence, macroeconomic transmission channels, and monetary policy outlook, using a large-scale online survey experiment.