than half of the surprise and decreasing with the forecast horizon …

published by the central banks of England, Sweden and Norway. The article presents the proposition of an inflation forecast … of inflation forecast targeting (IFT), inflation forecasts play a crucial role in the instrument rate decision … forecasts, the similarity of the forecasts and the inflation forecast deviations from the inflation target. The credibility …

improves the out-of-sample forecast accuracy of the model. Furthermore, we evaluate the case for introducing a discount factor …

, as it improves the forecast accuracy. Furthermore, consistency is time varying. Exploring this time variation, we provide …