Survey-based expectations are mostly used by monetary authorities for inflation forecasts and evaluation of the credibility of their inflation fighting policies. It is also an important link in the monetary policy transmission mechanism. This study examined the predictive ability of business...

In this paper we develop a new model that incorporates inflation expectations and can be used for the structural analysis of inflation, as well as for forecasting. In this latter connection, we specifically look into the usefulness of real-time survey data for inflation projections. We...