We study disinflations under imperfect credibility of the central bank. Imperfect credibility is modeled as the extent … to which agents rely on adaptive learning to form expectations. Lower credibility increases the mean, variance, and … skewness of the distribution of sacrifice ratios. When credibility is low, disinflationary policies become very costly for …

citizens in January 2019 that is designed to measure long-term inflation expectations and the credibility of the inflation … target. Our results indicate that credibility has decreased in our sample period, particularly in the course of the deep … several years, credibility has declined mainly because Germans increasingly expect that inflation will be much higher than 2 …

We use a representative online survey to investigate the inflation expectations of German consumers and the credibility … of the ECB's inflation target during the recent high inflation period. We find that credibility has trended downwards …