responds to inflation and output volatility, especially during economic crises. This framework offers a promising alternative …

Central banks are viewed as having a demonstrated ability to lower long-run inflation. Since the financial crisis … an explanation for why this may be the case. Because central banks have limited instruments, long-run inflation is … ultimately determined by fiscal policy. Central bank control of long-run inflation therefore ultimately hinges on its ability to …

In this paper, we estimate trend inflation in Sweden using an unobserved components stochastic volatility model. Using … data from 1995Q4 to 2021Q4 and Bayesian estimation methods, we find that trend inflation has been well-anchored during the … period - although in general at a level below the inflation target - and it does not appear to have been affected much by the …

. inflation anchoring properties. This layout is then confronted with the policy framework in use in the euro area prior to the … dis-anchoring of long-term inflation expectations experienced in the euro area since 2013, however, suggests that the … policy framework could benefit from a rebalancing towards a formulation with stronger anchoring properties. The inflation aim …

indicator for future inflation, therefore being only instrumental (to stabilize inflation) rather than important per se. …