Empirical evidence suggests consumers rely on their shopping experiences to form beliefs about inflation. In other …. Learning by shopping anchors households' beliefs about inflation to its past, causing disagreement with firms over the value of … inflation, increases the degree of anchoring of households' inflation expectations, and flattens the slope of the Phillips curve …

monetary policy regime under uncertain inflation dynamics that alter the steady state properties of the underlying model as … well as the stochastic dependencies between model parameters and shocks. Since shifts in the inflation target are examples … persistence of inflation to the recent proposal of Blanchard et al. (2010) to raise the inflation target from its conventional …

We analyse the interaction between private agents? uncertainty about inflation target and the central bank's data … uncertainty. In our model, private agents update their perceived inflation target and the central bank estimates unobservable … economic shocks as well as the perceived inflation target. Under those two uncertainties, the learning process of both private …

This paper aims at assessing the impact of inflation targeting on actual inflation when considering inflation … perceptions together with interrelated inflation expectations, modifying the seminal papers of Barro and Gordon (1983a and 1983b …). The modeling of inflation perceptions and of inflation expectations follows suggestions of recent literature, but also …

This paper aims at assessing the impact of inflation targeting on actual inflation when considering inflation … perceptions together with interrelated inflation expectations, modifying the seminal papers of Barro and Gordon (1983a and 1983b …). The modeling of inflation perceptions and of inflation expectations follows suggestions of recent literature, but also …

relationship between uncertainty of inflation persistence and optimal monetary policy and discusses the consequences of the recent … Blanchard proposal to implement a higher inflation target in the light of parameter uncertainty. Furthermore, it provides …

inflation and on unemployment. This relationship can be motivated by the existence of the Taylor rule. Using micro survey data … mainly driven by disagreement on inflation. Exploring further determinants, we confirm that central bank transparency as well …

We build a novel term structure model for pricing synthetic euro area core inflation-linked swaps, a hypothetical swap … contract indexed to core inflation. Our approach relies on a term structure model of traded headline inflation-linked swap … rates, which we assume span core inflation. The model provides estimates of market-based expectations for core inflation, as …

We build a novel term structure model for pricing synthetic euro area core inflation-linked swaps, a hypothetical swap … contract indexed to core inflation. Our approach relies on a term structure model of traded headline inflation-linked swap … rates, which we assume span core inflation. The model provides estimates of market-based expectations for core inflation, as …

significantly more favorable output-inflation trade-off than his peers. …