new type of inflation bias. Conversely, where, as is the case in the UK, credibility-building is still a concern for the …This paper analyses the impact of asymmetric preferences with respect to inflation and output by policymakers on … for low inflation. Using data for four G7 economies, the paper shows that, except for Germany, nonlinear and asymmetric …

unique survey-based measures of expected inflation, output growth, and interest rates, we estimate a small-scale New … guidance less effective. In a counterfactual analysis, we document that inflation would have been significantly higher, and the … public perceived central bank forward guidance statements to be perfectly credible. Moreover, inflation would have declined …