how central bank preferences (and thereby monetary policy) affect the relation between nominal interest rates, inflation … estimated by maximum likelihood on quarterly US data. The policy experiments include stronger inflation targeting, more active …

A simple test of inflation target credibility is constructed by subtracting the maximum and minimum inflation rates … consistent with the inflation targets from the yields to maturity on nominal bonds. This results in a target-consistent range of … absolute credibility and credibility in expectation, are distinguished. The credibility of inflation targets of Canada, New …

, future inflation rates, and future currency depreciation rates. They separate market expectations for the short, medium and …

inflation and real interest rates in Germany, using monthly data from the first quarter of 1967. The central results are two …-fold. First, the interest rate spreads considered contain considerable information about future changes in inflation, but no …- and two-year rates, for instance) appears to be the most informative for future inflation. These results are similar to …

Survey data on household expectations of inflation are routinely used in economic analysis, yet it is not clear to what … recovering households' implicit expectations of inflation from their consumption expenditures. We show that these implicit … expectations have predictive power for CPI inflation. They are better predictors of CPI inflation than survey responses, except for …

Forward interest rates have become popular indicators of inflation expectations. The usefulness of this indicator … depends on the relative volatility and the correlation of inflation expectations and expected real interest rates. This paper … expected real interest rate add to the inflation expectations is balanced by a tendency for expected real interest rates and …

central bank reputation and transparency. Monetary policy alternates between periods of active inflation stabilization and … periods during which the emphasis on inflation stabilization is reduced. When the central bank engages in only short … deviations from active monetary policy, inflation expectations remain anchored and the model captures the monetary approach …

exercised a counter-inflationary leadership role in the 1980s. Evidence is provided that expectations of German inflation may be … thought of as having impacted more strongly on expectations of inflation in other EMS countries in the EMS period than on non …-EMS countries (the UK) and in earlier periods. Co-integration tests show inflation rates in partner EMS member countries to be …

explored with the aid of some elements of game theory. It is shown: (a) how labour unions optimally adjust wages to prices … a tendency to inflation and unemployment simultaneously. …