We test for state-dependent bias in the European Central Bank's inflation projections. We show that the ECB tends to … underpredict when the observed inflation rate at the time of forecasting is higher than an estimated threshold of 1.8%. The bias is … most pronounced at intermediate forecasting horizons. This suggests that inflation is projected to revert towards the …

-term inflation target to help anchor expectations. This paper aims to document how much the release of the forecasts of one major … central bank, the Bank of Japan (BOJ), has influenced private sector expectations of inflation, and whether the degree of … influence depends to any degree on the adoption of an inflation target (IT). Consistent with earlier studies, we find the …

The new-Keynesian, Taylor-rule theory of inflation determination relies on explosive dynamics. By raising interest … rates in response to inflation, the Fed does not directly stabilize future inflation. Rather, the Fed threatens … hyperinflation or deflation, unless inflation jumps to one particular value on each date. However, there is nothing in economics to …

This paper studies the Great Inflation in Canada, Australia, and New Zealand. Newspaper coverage and policymakers …' statements are used to analyze the views on the inflation process that led to the 1970s macroeconomic policies, and the different … to use the monetary policy neglect hypothesis, which claims that the Great Inflation occurred because policymakers …

.4 trillion to $8.8 trillion. The analysis presented in this paper indicates that an inflation-asset elasticity of 0.042 accounted …

wake of the global financial crisis. The analysis reveals that an inflation-asset elasticity of 0.084 under Chairman Powell …’s tutelage accounted for more than 90 percent of the increase in consumer prices, compared with an inflation-asset elasticity of …

We construct an empirical test of whether the anticipation of adoption of inflation targeting affects the inflation … rate. We observe that most of the central banks adopt the regime after first achieving significant disinflation. With pre-inflation …-in-difference framework. We find that inflation targeting is successful in locking-in already low inflation rather than reducing high …

, we first test the effect of non-numerical information about inflation and monetary policy, the extitliteracy treatment … received the extitliteracy treatment, incorporate quantitative information differently into their inflation forecasts. We find … differently to the quantitative information in terms of the level of their inflation forecasts, but they react more strongly to …

, we first test the effect of non-numerical information about inflation and monetary policy, the literacy treatment. In the … the literacy treatment, incorporate quantitative information differently into their inflation forecasts. We find that the … information in terms of the level of their inflation forecasts, but they react more strongly to some treatments regarding their …