This paper examines how the interaction between inflation expectations and nominal and real macroeconomic variables has evolved for the United Kingdom over the post-WWII period until 2007. We model time-variation through a Markov-switching structural vector autoregressive framework with variants...

According to the Bank/GfK NOP survey, near-term inflation expectations have fallen markedly over the past year from elevated levels. In part, that may have reflected a reduction in households' perceptions of current inflation. But it is also likely to have reflected weaker demand prospects....

Inflation has been volatile in the past three years. This article examines how that has affected households' attitudes to inflation and to monetary policy more generally. Some of the volatility in inflation has fed through to households' perceptions of inflation, as measured by the Bank/GfK NOP...

This paper examines how the interaction between inflation expectations and nominal and real macroeconomic variables has evolved for the United Kingdom over the post-WWII period until 2007. We model time-variation through a Markov-switching structural vector autoregressive framework with variants...