expectations in that respect, agents are supposed to adopt economic forms of behaviour that are guided by simple rules of thumb … rational expectations equilibrium endogenously arise from those learning rules. Subsequently, the central bank implements an … show the primary importance of the credibility of central bank announcements regarding macroeconomic stabilization outcomes …

rational expectations, and study the role that a central bank, implementing an inflation targeting regime via a monetary policy … results point to the prime importance of the credibility of central bank's inflation target regarding macroeconomic … stabilisation, as well as the beneficial role played by that target as an anchoring device for private inflation expectations. We …

Whether people form their expectations of the future in a model-consistent or extrapolative manner, has implications … information about inflation expectations – that survey measures of expectations are inconsistent with rational expectations, but … the public believes the bank will adhere to. When inflation expectations differ between groups, the <em>ex ante</em> real …

We propose a novel framework to gauge the credibility of central banks' commitment to an inflation-targeting regime …

bank credibility in Poland, using survey-based measures of inflation expectations formed by consumers, enterprises and … financial sector analysts. It is confirmed that inflation expectations of enterprises and – especially – of financial sector … analysts display a high degree of anchoring at the NBP inflation target, while consumer inflation expectations are driven …

We use three different indicators based on inflation expectations to measure central bank credibility in 9 countries in … Central and Eastern Europe. We quantify credibility using differences between official inflation targets and inflation … expectations as well as differences between inflation expectations and implicit targets based on estimation of the Taylor rule …

Expectations play a major role in macroeconomic dynamics, especially regarding the conduct of monetary policy. Yet …, modeling the interplay between communication, expectations and aggregate outcomes remains a challenging task, mainly because … this requires deviation from the paradigm of rational expectations and perfect information. While agent-based macro models …

using existing macroeconomic models by modifying expectations about policy announcements. The main advantage of our method … incorporate information about future interest rate announcements: "inattention", "credibility", "finite planning horizon", and …