We propose a new approach to assessing the anchoring of inflation expectations using "strategic surveys". Namely, we … measure households' revisions in long-run inflation expectations after they are presented with different economic scenarios. A … key advantage of this approach is that it provides a causal interpretation in terms of how inflation events affect long …

A monetary policy strategy that keeps inflation expectations solidly anchored in line with a clearly communicated … nominal anchor succeeds in taming inflation scares and allows the Fed to respond more effectively to economic downturns. This … was a key policy message in Marvin Goodfriend’s 1993 article “Interest Rate Policy and the Inflation Scare Problem: 1979 …

rule and targets a zero inflation rate, there is a significant increase in the variability of output but not inflation …

. Disinflations are represented by changes in the target inflation rate of a interest-rate reaction function. Two kinds of rules are … the last 15 years. We assume agents are not fully cognizant of changes in the Fed’s inflation target and must instead …

approach to address endogeneity. Consistent with economic theory, our estimates show a nonlinear demand function that exhibits …

frameworks in the presence of a low natural rate of interest and a lower bound on interest rates. Under a standard inflation …-targeting approach, inflation expectations will be anchored at a level below the inflation target, which in turn exacerbates the … eliminate this problem of a downward bias in inflation expectations by following an average-inflation targeting framework that …