imperfect credibility and weak anchoring of long-term expectations. Within a medium-scale DSGE model, we introduce through a … determination of the central bank to leave unchanged its longterm inflation objective in the face of inflationary shocks. The … magnitude of private sector learning has been calibrated to match the volatility of US inflation expectations at long horizons …

A crucial but often ignored element of inflation expectations is the amount of perceived inflation risk. This paper …) using a new methodology. The main conclusion from our analysis is that, when monitoring inflation expectations, limitin … attetention to a point prediction is not sufficient. The analysis of inflation expectations should take into account inflation …

persistent credibility gains, even after inflation increased. …We show that the announcement of the ECB's Strategy Review and the revision of its inflation target in summer 2021 went … elements of the strategy can enhance the perceived credibility that price stability will be maintained in the medium …

Price level targeting has been proposed as an alternative to inflation targeting that may confer benefits if a central … bank sets policy under discretion, even if societyu0092s loss function is specified in terms of inflation (instead of price …-of-thumb to form inflation expectations, or does not fully understand the nature of the target, price level targeting may in fact …

, and thus an important factor for its credibility and policy effectiveness. This paper analyses the coverage which ECB … inflation environment, and that the media's coverage of decisions is generally highly responsive to ECB communication in …

, information transmission through changes in the interest rate creates a distortion, thus, lending an amount of credibility. This …

This paper first shows that the forecast error incurred when assuming that future inflation will be equal to the … inflation target announced by the central bank is typically at least as small and often smaller than forecast errors of model …-based and published inflation forecasts. It then shows that there are substantial benefits in having rule-of-thumb agents who …

credibility a pegged exchange rate regime yields a lower loss compared to an inflation targeting policy, even if this policy … for a policy-maker to adopt inflation targeting over a strict exchange rate targeting regime. Full credibility is not a …This paper shows that the credibility gain from permanently committing to a fixed exchange rate by joining the European …