Showing 1 - 10 of 86
This paper focuses on the formation of inflation expectations of consumers in 9 Central, Eastern and Southeastern European (CESEE) countries. Using data from the OeNB Euro Survey, a large cross-country consumer survey, we show that the difference between realized inflation and reported inflation...
Persistent link: https://www.econbiz.de/10014338791
This paper employs a Zero Lower Bound (ZLB) consistent shadow-rate model to decompose UK nominal yields into expectation and term premia components. Compared to a standard affine term structure model, it performs relatively better in a ZLB setting and effectively captures the countercyclical...
Persistent link: https://www.econbiz.de/10011339919
Using a large, nationally representative survey of US consumers, we estimate a causal 20 percent pass-through from inflation expectations to income growth expectations for the average consumer, with considerable heterogeneity in pass-through associated with sociodemographic factors. The results...
Persistent link: https://www.econbiz.de/10015179672
Inflation targeting has been adopted in a set of emerging economies, including eight countries in Latin America. The success of this regime may depend critically on the credibility of the target and the expectation that the authorities will take appropriate actions if the target is breached....
Persistent link: https://www.econbiz.de/10011286255
The purpose of the paper is to introduce the framework for decomposing the forecast of headline inflation, obtained by macroeconomic model of NBRM for monetary policy analysis and medium term projections (MAKPAM), into its components: food, energy and core inflation. The model for inflation...
Persistent link: https://www.econbiz.de/10011926820
This paper analyzes the time-varying degree of inflation expectations anchoring in Bolivia and, more precisely, whether inflation expectations have been in line with the inflation objectives announced by the Central Bank of Bolivia (BCB, for its acronym in Spanish) and if they have become better...
Persistent link: https://www.econbiz.de/10011882774
The establishment of the inflation targeting regime in Paraguay is relatively recent, however, the results have been satisfactory. This is because based on the observed data, from the implementation of this framework, it has been possible to not only reduce inflation levels, but also align...
Persistent link: https://www.econbiz.de/10011883801
We exploit a hidden Markov model where inflation is determined by government deficits financed through money creation and/or by destabilizing expectations dynamics (expectations can potentially divorce inflation from fundamentals). The baseline model, proposed by Sargent et al. (2009), is used...
Persistent link: https://www.econbiz.de/10011883865
We study how monetary policy communications associated with increasing the federal funds rate causally affect consumers inflation expectations in real time. In a large-scale, multi-wave randomized controlled trial (RCT), we find weak evidence that communicating these policy changes lowers...
Persistent link: https://www.econbiz.de/10015078324
Using a novel dataset that integrates inflation expectations with information on social network connections, we show that inflation expectations within one's social network have a positive, causal relationship with individual inflation expectations. This relationship is stronger for groups that...
Persistent link: https://www.econbiz.de/10015078554