We provide new insights on the formation of inflation expectations - in particular at a time of great financial and … answered a weekly questionnaire about their short-, medium- and long-term inflation expectations. Participants received common …. First, our evidence is consistent with long-term expectations having remained well anchored to the ECB's definition of price …

The way in which individual expectations shape aggregate macroeconomic variables is crucial for the transmission and … effectiveness of monetary policy. We study the individual expectations formation process and the interaction with monetary policy … heterogeneous forecasting heuristics, to explain coordination of individual expectations and aggregate macro behavior observed in …

expectations. Furthermore, the combination of the target and the tolerance bands around it communicated, provide a very clear … framework with which to evaluate monetary policy outcomes. A successful Central Bank then builds up credibility and a credible …

the ECB.s monetary policy credibility as measured by long-term inflation expectations, by looking at their effects on euro … long-term inflation expectations, suggesting that the monetary policy credibility of the ECB has not been harmed by these … expectations. We therefore find no strong evidence to suggest that ECB balance sheet policy announcements have led to much higher …

Anchored inflation expectations help stabilize inflation. Previous results indicate that monetary policy has been … this is also true at the national level. We define the disconnect' between inflation and inflation expectations and then … country-specific inflation experiences still affect national inflation expectations, and certainly more by comparison to the …

, suggesting that inflation expectations have remained well-anchored, and that explicit FOMC policy rate guidance has not adversely … affected central bank credibility. …

's ability to form realistic inflation expectations. …