How do firms form expectations about future inflation? We investigate this issue by exploiting the Survey of Inflation … of the wage setting process in Italy allows us to assess the reaction of inflation expectations to exogenous variation in … the cost of labour borne by firms. We find that firms' inflation expectations are significantly affected by contractual …

We investigate rationality of financial and real sectors' CPI inflation expectations in Turkey by using multivariate … proceed to analyze the significance of both past and future inflation rates as determinants of agents' future inflation … forecasts. Recursive estimates also show that forecasters' weight on future/target inflation rate versus past actual and …

The popularity of inflation targeting has risen in the last decade and the number of countries that adopted inflation … targeting as their monetary policy framework surpassed 40 by the end of 2016. This study analyzes whether inflation targeting … around the world has been successful in terms of achieving the announced target and keeping inflation rate around it. We …

Information frictions play a central role in the formation of household inflation expectations, but there is no … findings. First, individuals in lower-inflation contexts have significantly weaker priors about the inflation rate. This … also appear to be a source of information frictions: even when information about inflation statistics is made readily …

This paper estimates a time-varying AR-GARCH model of inflation producing measures of inflation uncertainty for the … policy regime change associated with the start of EMU in 1999. The main findings are as follows. Steady-state inflation and … inflation uncertainty have declined steadily since the inception of EMU, whilst short-run uncertainty has increased, mainly …

We use parametric power ARCH models of the conditional variance of inflation to model the relationship between … inflation and its uncertainty using monthly data for Germany, the Netherlands and Sweden over a period ranging from 1962 to 2004 ….For all three countries inflation significantly raises inflation uncertainty as predicted by Friedman. Increased …

This paper studies the importance of money for inflation in the euro area. An inflation equation is derived from a … small model that combines the supply and demand for money with a Phillips curve and the assumption that inflation … expectations develop adaptively. The model's solution attributes an impact on inflation not to actual money growth but to its core …

This paper estimates a time-varying AR-GARCH model of inflation producing measures of inflation uncertainty for the … change associated with the start of EMU in 1999. The main findings are as follows. Steadystate inflation and inflation … can achieve lower inflation uncertainty by lowering the inflation rate. …

. Adding inflation as a second variable, we uncover two states in which expected consumption growth is low, one with high and … one with negative expected inflation. Embedded in a general equilibrium asset pricing model with learning, these dynamics …