policy literature. The extent to which these firms adjust their prices to lagged inflation has been taken as fixed. We …

In this paper we explore the degree of anchoring of consumers' long-run inflation expectations. If expectations are … University of Michigan Survey of Consumer's rotating panel microstructure, we can identify changes in inflation expectations of … individual consumers over time. Our results indicate that long-run inflation expectations became more anchored over the last …

professional forecasters from four major European economies. Our estimates imply that inflation expectations in France, Germany and …

, we follow Roberts (1997) and Adam and Padula (2003) and use direct measures of inflation expectations. The data source is … the Ifo World Economic Survey, which quarterly polls economic experts about their expected future development of inflation … turns out to more relevant for most countries in our sample. (ii) The use of survey data for inflation expectations yields a …

Conjectures about inflation expectations are inextricably linked to our understanding of the relationship between the … therefore examines the empirical properties of inflation expectations data constructed on the basis of both qualitative and … provides some insights into the nature of the interaction between monetary policy and inflation expectations. …

The present paper uses survey data on expected consumer price developments to analyse the role of inflation … expectations in the inflation process. The survey measures of price expectations are derived from the European Commission … estimates of the New Keynesian inflation model presented here underscore the importance of inflation expectations for the short …

assumptions on the functional correspondence between price inflation, inflation expectations and marginal costs. Expectations are … not assumed to be an unbiased predictor of actual inflation and instead derived from the European Commission’s Consumer … Survey data. The results suggest that expectations drive inflation with a lag of about 6 months, which casts further doubt on …

This paper explores the question to what extent non-domestic factors provide an explanation of US inflation over the … last three decades. Are lagged dependent variables - traditionally interpreted as proxies for inflation expectations - just … influence on inflation, while the effects of domestic factors, such as the unemployment rate, have become weaker. These findings …

framework, indicating demand pressure that generates inflation. The output gap is also an important variable in itself, as a … value added in predicting inflation. The multivariate measures of the output gap have by far the best predictive power. This … predicting inflation. As uncertainties are particularly pronounced at the end of the calculation periods, assessment of pressures …

This paper examines the theory of the Phillips curve, focusing on the distinction between "formation" of inflation … expectations and "incorporation" of inflation expectations. Phillips curve theory has largely focused on the former. Explaining the … Phillips curve by reference to expectation formation keeps Phillips curve theory in the policy orbit of natural rate thinking …