Inflation expectations constitute a subject of particular contemporary interest to central banks, especially those … pursuing a monetary policy based on a strategy of direct inflation targeting. Macroeconomic theory indicates that the … to properties of inflation expectations. Qualitative data on inflation expectations, as obtained from surveys, can be …

the determination of inflation and output in the euro area and the existence of a non-vertical long-run Phillips curve …

Price level targeting has been proposed as an alternative to inflation targeting that may confer benefits if a central … bank sets policy under discretion, even if societyu0092s loss function is specified in terms of inflation (instead of price …-of-thumb to form inflation expectations, or does not fully understand the nature of the target, price level targeting may in fact …

inflation and the output gap, are unstable when estimated on euro area data and forecast poorly out of sample. We present an … argue reflects shifts in the publicu0092s perception of the long-run inflation objective. …