Kozicki, Sharon; Tinsley, P.A. - Center for Financial Studies - 2003
actual and perceived inflation targets are equal and fixed, long-horizon expectations
are independent of short-run policy in … example, Orphanides
and Williams (2003) illustrate that the perceived inflation target estimated by learning
agents may … in the 1980s by rapid reductions
in the true policy target but much slower declines in the perceived inflation target …