Diegel, Max; Nautz, Dieter - 2020 - This version: November 10, 2020
This paper empirically investigates the role of long-term inflation expectations for the monetary transmission … mechanism. In contrast to earlier studies, we confirm that U.S. long-term inflation expectations respond significantly to a … monetary policy shock. In line with a re-anchoring channel of monetary policy, we find that long-term inflation expectations …
