We investigate the importance of trend inflation and the real-activity gap for explaining observed inflation variation … in G7 countries since 1960. Our results are based on a bivariate unobserved-components model of inflation and … unemployment in which inflation is decomposed into a stochastic trend and transitory component. As in recent implementations of the …

Inflation targeting has been adopted in a set of emerging economies, including eight countries in Latin America. The … take appropriate actions if the target is breached. This paper exploits a database of inflation expectations and attempts … to measure whether, for a set of inflation targeters in Latin America, expectations are well anchored. A tighter …

Survey data indicate that a relatively large share of households is ill-informed about the rate of inflation in the … economy, with perceived and expected rates of inflation deviating substantially from official measures. Using Swedish micro …-level data, we find that such inflation illiteracy is related to respondent characteristics, including income, education and sex. …