We quantify spillovers of inflation expectations between the United States (US) and Euro Area (EA) based on break …-even inflation (BEI) rates. In contrast to previous studies, we model US and EA BEI rates jointly in a structural vector … autoregressive (SVAR) model. The SVAR approach allows to identify US and EA specific inflation expectations shocks. By modeling the …

credibility and, thus, maintaining low inflation in the long run is closely linked to anchored inflation expectations …This paper aims to improve the understanding of U.S. inflation dynamics by separating out structural from cyclical … effects using frequency domain techniques. Most empirical studies of inflation dynamics do not distinguish between secular and …

A parsimonious model of shifting policy regimes can simultaneously capture expected and actual US inflation during 1969 …. Private sector learning about policymaker type leads to a reputation state variable. We use model inflation forecasting rules … to extract state variables from SPF inflation forecasts. US inflation is tracked by optimal policy without commitment …

credibility and, thus, maintaining low inflation in the long run is closely linked to anchored inflation expectations …This paper aims to improve the understanding of U.S. inflation dynamics by separating out structural from cyclical … effects using frequency domain techniques. Most empirical studies of inflation dynamics do not distinguish between secular and …