Anchoring of inflation expectations is of paramount importance for central banks' ability to deliver stable inflation … and minimize price dispersion. Relying on daily interest rates and inflation forecasts from major financial institutions … the dispersion of inflation expectations, a proxy for the extent of anchoring, which is based on the same analysts …

Understanding the sources of inflation persistence is crucial for monetary policy. This paper provides an empirical … assessment of the influence of inflation expectations' anchoring on the persistence of inflation. We construct a novel index of … inflation expectations' anchoring using survey-based inflation forecasts for 45 economies starting in 1989. We then study the …

Do euro area inflation expectations remain well-anchored? This paper finds that the protracted period of low (and below …-target) inflation in the euro area since 2013 has weakened their anchoring. Testing their sensitivity to inflation and macroeconomic … news, this paper expands existing results in two key dimensions. First, by analyzing all available (advanced) inflation …

This paper incorporates market-based inflation expectations to the growing literature on trend inflation estimation …, and finds that there has been a significant decline in euro area trend inflation since 2013. This finding is robust to … using different measures of long-term inflation expectations in the estimation, both market-based and surveys. That evidence …

This paper is an empirical study of the links between monetary variables and inflation based on Cagan’s equation and … differenced model overcomes Evans’ critique of this test and that chronic inflation is essentially a monetary phenomenon caused by …

theory to model these inference exercises and to assess their general possibility of success. So, is it possible to infer …

Upward sloping yield curves are hard to reconcile with the positive association between income and inflation (the … Phillips curve) in consumption-based asset pricing models. Using US and UK data, this paper shows inflation is negatively … the importance of monetary policy, predicting that a permanently low growth and low inflation environment would …

credibility. In our setting, central bank credibility is proportional to the deviation of inflation expectations from the … announced inflation target, with positive deviations being more costly compared to negative ones. A loss in policy credibility … as a result of shocks leads to a more persistent, backward-looking inflation process, and is associated with lower output …

A number of industrialized countries have recently offered inflation-indexed bonds. Some members of another group of … countries that had earlier adopted more comprehensive indexation in response to high inflation have taken steps to reduce the … use of inflation-indexed bonds, and relates these to the experiences of various issuers. The paper also considers some …

of inflation rates to decline to targeted levels during many disinflation programs? This paper assesses the relative … data, we find that expectations of future inflation play a much more important role than past inflation in shaping the … inflation process. We also find that an improvement in primary fiscal balances significantly reduces inflation expectations …