HOUSEHOLD INFLATIONARY EXPECTATIONS AND MONETARY POLICY: DOES GENDER MATTER?

Paper Number :WP/11/2022
Publication Date :Jan. 1, 2022

We explore the evolution of inflation expectations of households in response to a change in monetary policy and whether there is a differential impact across gender. Relatedly, we also segregate this behaviour in terms of extensive versus intensive margins and the evolution of such behaviour during periods of key policy changes. The findings indicate that food and housing inflation play an important role in driving inflation expectations of women households at the longer end. As well, the evidence appears to suggest that it is extensive margin that drives inflation expectations of women in the short-term, whereas over the longer-term, it is intensive margin that dominates. We undertake several robustness tests of the results and find that not all policy actions exert a differential impact on inflation expectations of women.