
A New View of the Relationship Between Oil Prices, Gasoline Prices and Inflation Expectations
Dallas Fed It has been considered self-evident until recently that oil prices drive inflation expectations, but new evidence calls into question this conclusion. Conventional wisdom within macroeconomics is that U.S. inflation expectations respond to the level of the price of oil (or the price of gasoline). This view is based on coefficients of regressions of inflation expectations on the price


