A prolonged period of low inflation, particularly in a situation of monetary policy rates near the zero lower bound …, can heighten the risk of inflation expectations de-anchoring from the central bank objective. The purpose of this paper is …/realized inflation and output. To do so we consider a simple New Keynesian model where agents, rather than being endowed with rational …

funds rate. However, we find a predominance of adaptive expectations in shaping the paths of inflation ad output gap. Our … results also suggest that the Fed has followed a 'Strict Inflation Targeting' strategy under Greenspan's regime. …

funds rate. However, we find a predominance of adaptive expectations in shaping the paths of inflation ad output gap. Our … results also suggest that the Fed has followed a "Strict Inflation Targeting" strategy under Greenspan's regime …

, we construct indices of real activity and inflation dynamics for each country, based on soft and hard indicators. In the …

Based on market expectations reported by the Central Bank of Brazil for the SELIC interest rate, the IPCA inflation … expectations about the IPCA inflation rate and the SELIC interest rate have a strong negative relationship with central bankers …