This paper applies ARDL and Nonlinear ARDL models to long-term inflation targeting policy mechanisms in the United … States and China to assess the impact of oil price dynamics and asymmetries on inflation expectations in the two countries … changes on inflation expectations, and further provide a theoretical basis for the empirical results. We use data from 2010 to …

Economists and policymakers believe that households’ and firms’ expectations of future inflation are key determinants … of actual inflation. This paper applies the ARDL model and nonlinear ARDL model to long-term inflation-targeting policy … mechanisms in the United States and China to assess the impact of oil price dynamics and asymmetries on inflation expectations …

variables, should not affect agents ́expectations of inflation in the long term. Our estimated structural VARs show that both … long- and short-term inflation expectations are sensible to policy-related uncertainty shocks. A rise of long …-term inflation expectations in times of economic contraction, in response to such shocks, suggests that heightened policy uncertainty …