Inflation expectations are a key variable in conducting monetary policy. However, these expectations are generally … unobservable and only certain proxy variables exist, such as surveys on inflation expectations. This paper offers guidance on the … appropriate quantification of household inflation expectations in the Swiss Consumer Survey, where answers are qualitative in …

Economic theory predicts that intertemporal decisions depend critically on expectations about future outcomes. Using … of expectations for output growth, inflation, and the policy rate. We show that a simple unobserved components model of …

We study the effects of forward guidance with an approach that combines theory with experimental estimates of … rates. Respondents significantly downward-adjust their inflation expectations in response to learning about an increase in … the Fed’s projection about the federal funds rate three years in the future, and they expect inflation to respond most …

investigate if the unique and adaptively learnable REE is desirable in an inflation rate targeting regime in the sense that a low … and not too variable CPI inflation rate in equilibrium is achieved. The monetary authority is using a Taylor rule when … that the monetary authority should increase (decrease) the interest rate when the CPI inflation rate increases (decreases …