We combine questions from the Michigan Survey about future inflation, unemployment, and interest rates to investigate …

In this paper we systematically evaluate how central banks respond to deviations from the inflation target. We present … a stylized New Keynesian model in which agents' inflation expectations are sensitive to deviations from the inflation … inflation exceeded the target in the past. Moreover, the central bank responds non-linearly to past inflation gaps. This is …

significantly more favorable output-inflation trade-off than his peers. …

that seven of the eight countries have adopted an explicit inflation-targeting framework, we conclude that there is very … inflation and the output gap are measured. …

This paper proposes a new approach to assess the degree of anchoring of inflation expectations. We extend the static … provides estimates of a market-perceived inflation target as well as the strength of the anchor that holds expectations at that … target. A cross-country study based on a new data set of daily break-even inflation rates for the US, EMU, UK and Sweden …

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 …

In order to create an environment of low and stable inflation in Mexico it has been necessary to generate a framework …. In this context, this paper describes some structural achievements to control inflation that have been attained in Mexico …. In addition, it shows empirical evidence in favor of the anchoring of inflation expectations, particularly those for the …

We use laboratory experiments with human subjects to test the relevance of di-fferent inflation targeting regimes. In … particular and within the standard New Keynesian model, we evaluate to what extent communication of the inflation target is … relevant to the success of inflation targeting. We -find that if the central bank only cares about inflation stabilization …

In this paper we systematically evaluate how central banks respond to deviations from the inflation target. We present … a stylized New Keynesian model in which agents' inflation expectations are sensitive to deviations from the inflation … inflation exceeded the target in the past. Moreover, the central bank responds non-linearly to past inflation gaps. This is …

-making. During the ECB's first decade, average inflation in the euro area has been low, but it has failed to meet the ECB's criterion of … inflation expectations in the euro area, which have even reached over 2%, and the credibility of the ECB achieving price … term inflation expectations are negatively affected by the inflation experience of the euro area. However, this paper …