The United Kingdom is a highly open economy, and has a monetary policy strategy of targeting inflation in consumer … prices. In this paper, we look at the evidence from the UK on inflation behaviour, and examine the propositions from several … theoretical models about inflation dynamics in an open economy, focussing in particular on the hypothesised connections between …

horizon-dependent biases and lower accuracy than simple unconditional uncertainty forecasts. We examine the inflation …

underestimate the ECB's inflation forecasting accuracy. In particular, they believe that the ECB is overly optimistic. Communication … that challenges these perceptions improves the anchoring of inflation expectations, reduces inflation uncertainty and … discourages consumption of durable goods. Treated households also report higher trust in the ECB, perceive the ECB's inflation …

inflation will neither increase nor decrease in the short-run. We estimate the NAIRU jointly with price equations by using the … a beneficial impact on RPIX inflation over the last few years. We show that deviations of unemployment from the short …-run NAIRU measures prove helpful in predicting inflation and we demonstrate their usefulness in Taylor-type policy rules for the …

This paper takes up the issue of the flexibility of inflation targeting regimes, with the specific goal of determining … whether the monetary policy of the Bank of England, which has a formal inflation target, has been any less flexible than that … of the Federal Reserve, which does not have such a target. The empirical analysis uses the speed of inflation forecast …