Lima, Gilberto Tadeu; Setterfield, Mark; Silveira, … - Departamento de Economia, Faculdade de Economia, … - 2013
Drawing on an extensive empirical literature that suggests persistent and time-varying heterogeneity in inflation expectations, this paper embeds two inflation forecasting heuristics – one based on the current rate of inflation, the second anchored to the official inflation target – in a...
