The strongest datapoint that I know of that inflation can be driven by expectations of inflation is the introduction of the real in Brazil. https://www.npr.org

The strongest datapoint that I know of that inflation can be driven by expectations of inflation is the introduction of the real in Brazil. https://www.npr.org/sections/money/2010/10/04/130329523/how-fake-money-saved-brazil https://www.npr.org/sections/money/2010/10/04/130329523/how-... has the full story. The short version was that they made people list prices in both the existing currency, the cruzeiro, and the new one that didn't exist, the real. They then deflated the real at the same rate that the cruzeiro was inflating. (80% per month.) After a while everyone had internalized that the real did not inflate while the cruzeiro did. Then they started making the real and inflation went from 80%/month to approximately 0%/month.