expectations. In the open economy context, we make the assumption that all imports are intermediate goods. Possible persistence in … expectations is taken into account by using direct proxies i.e. Consensus Economics survey data for inflation expectations. The … analysis must be based on structural models, which capture expectations dynamics and the open economy aspects of the inflation …

assumption that all imports are intermediate goods. Instead of imposing rational expectations a priori, Consensus Economics … survey data and OECD inflation forecasts are used to proxy inflation expectations. The results suggest that, compared with a … specification. Moreover, in the open economy context, and even if we allow for persistence in expectations, the hybrid specification …

to unemployment over the last decade is a result of firmly anchored inflation expectations. …