Abstract
Policymakers often rely on survey data when gauging expectations. To know the limits of survey data is thus crucial. We look at inflation expectations as measured through the Deloitte CFO Survey Switzerland and respondents’ sensitivity to question ordering thereof. We investigate whether forecast inconsistencies—the discrepancies between point and density forecasts—as well as forecast accuracy change significantly depending on whether the point forecast or the density forecast is asked first. We find that forecast inconsistencies are sizable and order matters. Density forecasts seem to be less affected by question ordering than point forecasts and more accurate than point forecasts.
Authors
- Maxime Phillot
- Rina Rosenblatt-Wisch
JEL codes
- E31
- E37
- E58