This paper analyses the role of inflation expectations in the euro area. On one hand, the question is how inflation … expectations affect both inflation and output, and, on the other hand, how inflation expectations reflect developments in these … variables. The analyses make use of a simple VAR model of inflation, inflation expectations and the output gap that allows for …

euro area. Instead of imposing rational expectations, direct measures, ie OECD forecasts, are used as empirical proxies for … economic agents´ inflation expectations. Real marginal costs are proxied by three different measures. The results suggest that … OECD inflation forecasts perform relatively well as a proxy for inflation expectations in the euro area, since under this …

uncertainty is closely related to the output growth uncertainty. In forming expectations, individual forecasters seem to behave …

of imposing any specific form of expectations formation, di-rect measures, ie Consensus Economics survey data are used to … proxy economic agents’ inflation expecta-tions. According to the results, the New Classical Phillips curve has satisfactory … forward-looking, and inflation cannot instantaneously adjust to changes in expecta-tions. Consequently, even allowing for …

the euro area: the older expectations-augmented Phillips curve and the new Keynesian Phillips curve. The main focus is on … the role of expectations and comparison of the two theories. Instead of imposing rational expectations, an alternative and … in principle less restrictive approach is applied to operationalising expectations. Direct measures of inflation …

imposing rational expectations, direct measures, ie OECD forecasts, are used to proxy economic agents’ inflation expectations …. Real marginal costs are measured in three different ways. The results suggest that with directly measured expectations the … non-rationality in expectations, a lagged inflation term enters the New Keynesian Phillips curve for European inflation …

achieve robustness against incomplete information about the structure of the economy by distorting their expectations in a … particular direction. It shows how a linear rational expectations equilibrium under concern for robustness can be solved by … responses of private consumption to government expenditure shocks under robust expectations. …

Secretariat forecast data for inflation expectations. <p> A very important result for monetary policy are the large differences …