assessing empirical evidences on relationships between expected inflation, observed inflation and the Central Bank's credibility …. It is found that an inflation positive shock causes not only an increase of the expected inflation, but also a decrease … of the Central Bank's credibility, which is measured through a time-varying correlation between the expected inflation …

This paper analyzes the time-varying credibility of the Fed's inflation target in an empirical macro model with … asymmetric information, where the public has to learn about the actual inflation target from the Fed's interest rate policy. To …-term inflation expectations of professionals with the perceived inflation target. …

Empirical evidence suggests consumers rely on their shopping experiences to form beliefs about inflation. In other …. Learning by shopping anchors households' beliefs about inflation to its past, causing disagreement with firms over the value of … inflation, increases the degree of anchoring of households' inflation expectations, and flattens the slope of the Phillips curve …