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 …

empirically whether target formulations matter for the anchoring of long-term inflation expectations. In a panel of 29 countries … quantitative definition of price stability. A point target is more sucessful in limiting upside risks to inflation, while a range … target allows for higher downside risk to the inflation outlook. Our results suggest that range targets and tolerance bands …

The present paper studies the effect of monetary policy on inflation and output within a New Keynesian model with … transmission in two ways. First, the impact response of inflation and output to monetary policy shocks is less pronounced since the … response of expectations under EBL is muted. Second, the response of inflation is more persistent, since the interest rate …