Pre-registration: Route 1 of the Correction Freeze Problem (Threshold Ratchet)

This study asks a simple question about how people correct their beliefs. When consumers revise their inflation expectations, do they react to the size of the most recent price change, as Route 1 of the Correction Freeze Problem predicts, or to the total distance prices have moved since they last changed their minds? The test uses public data that already exist but that the author has not yet accessed.