detect biases in empirically relevant settings. We illustrate the methodology using data on inflation forecasts. Our …

One of the dangers of high inflation is that it can cause firms and households to pay close attention to it. This … internalization of inflation can lead to an accelerationist regime, making inflation harder to control. We empirically assess the … relationship between attention and the level of inflation for 37 countries. Our measures of attention are constructed either from …

Prior research has documented that attention to inflation shifts when inflation surpasses a 3-4% threshold. In this … note we examine how attention to inflation declines in episodes of disinflation. We show that for countries where inflation … inflation. We show evidence that wage growth is more strongly correlated with past inflation when attention is high. This is one …

looking pricing account for the observed persistence in aggregate inflation. Second, price-setting responds to movements in … marginal costs, which should therefore be the driving force to observed inflation dynamics. This is not always the case in … conditions under which imposing homogeneity results in overestimating a backward-looking component in (aggregate) inflation, and …

exploits the rounding patterns in individuals' responses to survey questions on inflation expectations (Binder, 2017). This … inflation expectations. …

In most OECD countries, we cannot reject up to three breaks in the mean of inflation: one break in the late 1960’s … phenomena. We also show that ignoring breaks in the mean of inflation clearly lead to overrate inflation persistence in standard … bi-variate models of inflation. The response of inflation to shocks in these models is markedly faster with breaks than …