We quantify spillovers of inflation expectations between the United States (US) and Euro Area (EA) based on break …-even inflation (BEI) rates. In contrast to previous studies, we model US and EA BEI rates jointly in a structural vector … autoregressive (SVAR) model. The SVAR approach allows to identify US and EA specific inflation expectations shocks. By modeling the …

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 …

imperfect credibility and weak anchoring of long-term expectations. Within a medium-scale DSGE model, we introduce through a … determination of the central bank to leave unchanged its longterm inflation objective in the face of inflationary shocks. The … magnitude of private sector learning has been calibrated to match the volatility of US inflation expectations at long horizons …

Modern monetary policy focuses on credibility and shaping consumers' inflation expectations. According to the concept …-making process and may be a specific intermediate target. The aim of the study is to analyse the credibility of inflation forecasts … credibility index. The inflation forecasts' credibility index may be calculated for all types of inflation forecasts made by …

that the inflation bias can persist even when the central bank commits. A simple model is presented in which the central … bank precommits by setting the policy instrument, and the subsequent adjustment of inflation expectations is part of the … transmission mechanism. Generally there is still an inflation bias, despite the absence of a time-inconsistency problem. It is …