Short-term market interest rates seem to have been less responsive to economic news in the post-crisis period. We evaluate two potential reasons: forward guidance and the constraint on monetary policy imposed by the zero lower bound (ZLB). We quantify how the ZLB has dampened market reactions to...

This paper analyses the determinants of short-term inflation expectations based on surveys of professionals, using dynamic cross-country panel estimation for a large number of 34 OECD economies. We find that food consumer price inflation and depreciations of the domestic exchange rate have...

We study how domestic and global output gaps affect CPI inflation. We use a New-Keynesian Phillips curve framework which controls for nonlinear exchange rate movements for a panel of 26 advanced and 22 emerging economies covering the 1994Q1-2017Q4 period. We find broadly that both global and...