Whether people form their expectations of the future in a model-consistent or extrapolative manner, has implications for the way the economy and monetary policy are modelled. The first half of this paper provides three pieces of information about inflation expectations – that survey measures...

Ball and Sheridan (forthcoming) show that OECD countries with a history of high inflation before the 1990s have subsequently experienced a larger degree of disinflation than countries with a history of low inflation. They label this process ‘regression to the mean’, and argue that it...

In this paper we discuss the development of Phillips curves in Australia over the forty years since Phillips first estimated one using Australian data. We examine the central issues faced by researchers estimating Australian Phillips curves. These include the distinction between the short and...