Anchoring of Inflation Expectations in the Euro Area: Recent Evidence Based on Survey Data
By Tomasz Łyziak, Maritta Paloviita. Social Science Research Network, 2016
119 citations recorded by the source corpus.
This article analyses the anchoring of inflation expectations of professional forecasters and consumers in the euro area. We study anchoring, defined as the central bank's ability to manage expectations, by paying special attention to the impact of the ECB inflation target and ECB inflation projections on inflation expectations. Our analysis indicates that in the post-crisis period longer-term inflation expectations have become somewhat more sensitive to shorter-term ones and to actual HICP inflation. We also find that the ECB inflation projections have recently become more important for short- and medium-term expectations of professional forecasters and at the same time the role of the ECB inflation target for those expectations has diminished. Overall, our analysis suggests that in recent years inflation expectations in the euro area have shown some signs of de-anchoring.
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/bb4895aabd7df5cc21e56054114e47277661a76a
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
In Finance
Citations in the corpus
- Tail Co-Movement in Inflation Expectations as an Indicator of Anchoring (2017, background): “…down in response to lower-than-expected inflation but do not respond to higher-than-expected outturns; also, is coherent with the findings in Lyziak and Paloviita (2016) such that longer-term inflation forecasts have become somewhat more sensitive to shorter-term forecasts and to actual…”