In this paper, we study the evolution of inflation expectations for two key emerging economies, Brazil and Turkey … survey-based inflation expectations and inflation targets set by the central banks of Brazil and Turkey with the predictions … inflation expectations are anchored more closely the inflation target set by the Central Bank for Brazil. By contrast, there is …

inflation target and its exposure to political pressures. We apply our methodology to Brazil as well to highlight its advantages … based on the changes in actual inflation rate do not perform very well in environments of chronic inflation. We design an … the central bank’s ability to lower inflation expectations towards its inflation target via current interest rate …

We investigate the regime-dependent and time-varying behavior of inflation expectations and the uncertainties of … expectations in Turkey through threshold regressions, and lag-augmented vector autoregression (LA-VAR) based time-varying Granger … causality tests. Results suggest state-dependent behavior of both the level and the uncertainty of inflation expectations …