Estimates of the cost of disinflation made before the recent reduction in the inflation rate varied widely. Estimates … reduction in the inflation rate. At one extreme it was argued thata resolute and credible monetary policy could reduce inflation …

Understanding the sources of inflation persistence is crucial for monetary policy. This paper provides an empirical … assessment of the influence of inflation expectations' anchoring on the persistence of inflation. We construct a novel index of … inflation expectations' anchoring using survey-based inflation forecasts for 45 economies starting in 1989. We then study the …