Variable and high rates of price inflation in the 1970s and 1980s led many countries to delegate the conduct of monetary policy to "instrument-independent" central banks and to give their central banks a clear mandate to pursue price stability and instrument independence to achieve it. Advances...

The modelling of expectations and its degree of backward looking behaviour are issues of main concern in the inflation dynamics research agenda. One approach in the literature is to use expectations from surveys as an approximation to actual expectations. We estimate the Phillips curve allowing...