inflation and deflationary biases in inflation expectations. In a model with an occasionally binding zero-lower-bound constraint …, we show that an inflation bias as well as a deflationary bias exist as a steady-state outcome. We assess the predictions … of this model using unique individual-level inflation expectations data across nine countries that allow for a direct …

underlying macroeconomic consensus is that inflation rates of 2% are consistent with a stable rise of economic growth. While most … not an outcome of inflation targeting. The paper firstly revises the theoretical background of inflation targeting and … is presented, which critically discusses the necessary framework under which tools of inflation targeting might work to …