-implied and statistical density functions to gain insight into deflation risk. Inflation expectations show a decreasing mean but … influence of monetary policy announcements on inflation expectations diminished. Tail events such as deflation although still … uncertainty reveals market participants concerns about possible extreme inflation or deflation outcomes in the future. …

average inflation targeting (AIT). Inflation expectations significantly increase for the treated individuals. When provided … with additional information about near-term inflation, individuals update their expected inflation path in line with the … difference in medium-term inflation expectations from our survey results. Under AIT, inflation is substantially less volatile and …

Evidence on the credibility of a central bank's inflation target typically refers to the anchoring of survey …-based measures of inflation expectations. However, both the survey question and the anchoring criteria are only loosely connected to … the actual inflation target used in monetary policy practice. By using the exact wording of the ECB's definition of price …

We study how households adjust their medium-term inflation expectations under the new ECB strategy. We find that survey … respondents make little difference between the previous strategy of targeting inflation rates close to but below 2% and the new … time, expect somewhat higher medium-term inflation. Respondents asked to assume inflation currently running below target …

different response on the rate of inflation. Our results show that under fiscal dominance, unconventional monetary policy has … similar effects to conventional monetary policy on inflation because these wealth effects exert downward pressure on prices …