We study the effects of forward-looking communication in an environment of rising inflation rates on German consumers …' inflation expectations using a randomized control trial. We show that information about rising inflation increases short- and … long-term inflation expectations. This initial increase in expectations can be mitigated using forward-looking information …

consumption via managing inflation expectations based on the Euler equation. Unconventional fiscal policy uses trivial … announcements of future consumer-price increases to boost inflation expectations and consumption expenditure on impact. Instead … inflation expectations and spending today. We find households' inflation expectations and readiness to spend react substantially …

Inflation targeting is implemented in different ways – most often by adopting point targets, by having tolerance bands … target types affect the anchoring of inflation expectations at shorter horizons differently. It tests two contradictory …. This suggests that there are some benefits to adopting intervals, but the central bank can anchor inflation expectations …

This paper applies a recently developed method (Inoue and Rossi, 2021) to estimate functional inflation expectations … on both inflation and output. In addition, threshold functional local projections indicate that the effects are nonlinear … and depend on central bank credibility. Further, inflation expectations shocks have similar effects to supply (demand …

Inflation expectations are a key determinant of actual and future inflation and thus matter for the conduct of monetary … policy. We study how firms form their inflation expectations using quarterly firm-level data from the Bank of Canada …'s Business Outlook Survey, spanning the 2001 to 2015 period. The data are aggregated to construct an inflation expectations index …

effective in State 2. Exogenously differentiating regimes by the level of inflation or the shock size does not reveal state … data determine two inflation regimes and find that they are characterized by high and low inflation volatility. We then … exhibit a more substantial and more persistent effect on downstream prices during periods of elevated inflation volatility …

inflation targeter early in this period but began to pay less attention to inflation after 2009. Loss of the strong nominal …

(VAT) effective in 2007. This shock increased German households' inflation expectations during 2006, as well as actual … study the causal effect of unconventional fiscal policies on consumption expenditure via the inflation-expectations channel … inflation in 2007. Matched households in other European countries serve as counterfactuals in a difference …

found to help rationalizing the hump-shaped response of inflation, without resorting to the counterfactual assumption of …