Professional Forecasters as proxy for expected inflation. We obtain significant and plausible estimates for the structural … inflation enters the price equation significantly, even when controlling for its ability to predict expectations. This suggests … a role for lagged inflation beyond that of capturing non-rationalities in expectations. This suggests a role for lagged …

of inflation and a suitably defined output gap, but that a concern for robustness requires greater resistance to surprise … increases in inflation than would be considered optimal if one could count on the private sector to have "rational expectations". …