This paper introduces adaptive learning and endogenous indexation in the New-Keynesian Phillips curve and studies … episode price-setting firms’ expect inflation to be highly persistent and opt for backward-looking indexation. As the central … that choose the rate for indexation also re-assess the likelihood that announced inflation targets determine steady …

This paper introduces adaptive learning and endogenous indexation in the New-Keynesian Phillips curve and studies … episode price-setting firms' expect inflation to be highly persistent and opt for backward-looking indexation. As the central … that choose the rate for indexation also re-assess the likelihood that announced inflation targets determine steady …