optimal but ’simple’ forecast functions, describes subjects’ inflation expectations surprisingly well and explains the …This paper presents experimental evidence from a monetary sticky price economy in which output and inflation depend on … expected future inflation. With rational inflation expectations, the economy does not generate persistent deviations of output …

perform poorly when knowledge is imperfect. In particular, policies that fail to maintain tight control over inflation are … prone to episodes in which the public's expectations of inflation become uncoupled from the policy objective and stagflation … effective communication of a central bank's inflation objective and of continued vigilance against inflation in anchoring …

Do survey data on inflation expectations contain useful information for estimating macroeconomic models? I address this … restriction and helps to determine the forecasting model for inflation that agents use under learning. My results reveal that the … inflation expectations. …

The present paper compares expected inflation to (econometric) inflation forecasts based on a number of forecasting … expected inflation we develop a recursive filtering algorithm which extracts unexpected inflation from real interest rate data …, even in the presence of diverse risks and a potential Mundell-Tobin-effect. The extracted unexpected inflation is compared …

, 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 …

perceived inflation persistence by the private sector. Such a sophisticated policy reduces inflation persistence and inflation … volatility at little cost in terms of output gap volatility. Persistent responses to cost-push shocks and stability of inflation … play is very different. In the case of commitment it relies on expectations of future policy actions affecting inflation …

This paper examines the long-run effects of supply shocks (such as oil shocks) on inflation in the United States. The … persistence of supply shocks in U.S. inflation fell considerably during the period of Volcker's disinflation (1979-1982). My … the behavior of inflation expectations-agents expected shocks to persist in the pre-Volcker period, but not in the post …

In this paper we incorporate the term structure of interest rates in a standard inflation forecast targeting framework ….We find that under flexible inflation targeting and uncertainty in the degree of persistence in the economy, allowing for …

inflation expectations but learns about them from economic outcomes, which are in part the result of the disinflation policy … that under the DOP inflation stay between the levels implied by the CEP and the CP. A novel result is that this holds … irrespective of the initial level of inflation. Moreover, while at high levels of inherited inflation the DOP moves closer to the …

minorities, are highly heterogeneous in their expectations of inflation. We estimate a model of inflation expectations based on … outperforms existing models of inflation expectations in explaining the heterogeneity in the data. We find that women, ethnic … update their expectations. In addition, we show that personal income forecasts are positively related to subjective inflation …