advanced economies and emerging markets to quantify the effects of fiscal tightening on inflation expectations. We find that … fiscal consolidation announcements reduce inflation expectations over the medium-term (three and five-years ahead), but not …" about expected future inflation at longer horizons. The inflation anchoring role of consolidation announcements is enhanced …

identification via heteroskedasticity. We show that positive changes in interest rates cause inflation expectations to decline and … affects inflation expectations in an emerging economy using high frequency identification techniques …

Central banks in major industrialized economies were slow to react to the surge in inflation that began in early 2021 … war in Ukraine. We investigate the consequences of policy delay in responding to inflation shocks. First, using a simple … three-period model, we show how policy delay worsens inflation outcomes, but can mitigate or even reverse the output decline …

This paper studies how and why inflation expectations have changed since the emergence of Covid-19. Using micro …-year and five-ten year horizons has widened since the surge of inflation during 2021, along with the mean. Persistently high … adaptive learning is able to mimic the change in inflation expectations over time for different demographic groups. The …

The consensus among central bankers is that higher inflation expectations can drive up inflation today, requiring … tighter policy. We assess this by devising a novel method for identifying shocks to inflation expectations, estimating a semi … data for the United States, we find that a positive inflation expectations shock is deflationary and contractionary …

supply chain disruptions for inflation and monetary policy in sub-Saharan Africa. Increases in supply chain pressures have … had a sizeable impact on headline, food, and tradable inflation for a panel of 29 sub-Saharan African countries from 2000 … to 2022. Our findings suggest that central banks can stabilize inflation and output more efficiently by monitoring global …

This paper analyzes the dramatic rise in U.S. inflation since 2020, which we decompose into a rise in core inflation as … measured by the weighted median inflation rate and deviations of headline inflation from core. We explain the rise in core with …-through into core from past shocks to headline inflation. The headline shocks themselves are explained largely by increases in …

particular inflation. The paper's major finding is that there indeed is a negative relationship between central bank financial … strength and inflation outcomes. This relationship appears to be robust to the choice of alternative country samples, control …

This paper argues case that a tighter fiscal policy stance can meaningfully support central banks in fighting inflation … more effective than fiscal policy in battling inflation in open economies due to the exchange rate channel, we show that a …