accountability through transparency leads to a lower expected rate of inflation and less stabilization of supply shocks …

accountability through transparency leads to a lower expected rate of inflation and less stabilization of supply shocks …

We provide a decomposition of nominal yields into real yields, expectations of future inflation and inflation risk … premiums when real bonds or inflation swaps are unavailable or unreliable due to their relative illiquidity. We combine nominal … yields with surveys of inflation forecasts within a no-arbitrage model where conditional expectations are latent but spanned …