Understanding the sources of inflation persistence is crucial for monetary policy. This paper provides an empirical … assessment of the influence of inflation expectations' anchoring on the persistence of inflation. We construct a novel index of … inflation expectations' anchoring using survey-based inflation forecasts for 45 economies starting in 1989. We then study the …

Modifications to Japan''s monetary policy framework will be needed as positive inflation resumes because the current … an ""anti-deflation"" objective to an inflation objective, complemented by a shift of monetary operations from a …

The ECB''s objective of medium-term inflation below 2 percent has been portrayed by critics as ambiguous, asymmetric … that: (1) in terms of guiding inflation expectations and policymaking, the current definition has functioned much as would … an inflation target centered on 1 1/2-1 3/4 percent; (2) the absence of a specific (point) target for medium …

Inflation persistence is sometimes defined as the tendency for price shocks to push the inflation rate away from its … steady state—including an inflation target—for a prolonged period. Persistence is important because it affects the output … costs of lowering inflation back to the target, often described as the “sacrifice ratio”. In this paper I use inflation …

with that of high-inflation developing countries. In general, the behavior of key macroeconomic variables—inflation, output … observed in developing countries, although some resemblance to this pattern could be found in Italy in 1987–92 and Greece in …

credibility. In our setting, central bank credibility is proportional to the deviation of inflation expectations from the … announced inflation target, with positive deviations being more costly compared to negative ones. A loss in policy credibility … as a result of shocks leads to a more persistent, backward-looking inflation process, and is associated with lower output …