Inflation Targeting Does Not Anchor Inflation Expectations: Evidence from Firms in New Zealand

By Saten Kumar, Hassan Afrouzi, Olivier Coibion, Y. Gorodnichenko. 2015

252 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/db7c6db25b952b6d3cb167c43acd3e026dfa21fa

Citations in the corpus

• The Formation of Expectations, Inflation, and the Phillips Curve (2018, unknown): “Kumar et al. (2015) document similar patterns for households and firms managers in New Zealand.”
• Necessity As the Mother of Invention: Monetary Policy after the Crisis (2017, unknown): “Taylor, 2009), which fueled an asset price boom and spurred financial intermediaries to increase leverage and take on excessive risks (Borio and Zhu, 2008). Before the financial crisis, many central banks, especially the inflation targeters, thought they should take financial stability into account ”
• How Do Firms Form Their Expectations? New Survey Evidence (2018, unknown): “9 Kumar et al. (2015) document additional differences between the forecasts of managers in the New Zealand survey and those of households.”
• How Do Expectations about the Macroeconomy Affect Personal Expectations and Behavior? (2020, unknown): “Our findings contribute to a growing literature that uses survey data to study the formation of people’s macroeconomic expectations and the e↵ect of these expectations on individual behavior (Manski, 2004; Coibion and Gorodnichenko, 2012, 2015a; Kumar et al., 2015; Roth and Wohlfart, 2017; Manski, 2”
• Monetary Policy Communications and Their Effects on Household Inflation Expectations (2018, unknown): “This is consistent with previous evidence on the knowledge of households and firms in low-inflation environments about monetary policy (Binder 2017, Kumar et al. 2015, Cavallo et al. 2017).”
• Coronavirus Fears and Macroeconomic Expectations (2020, unknown): “Previous literature documents that consumer knowledge of the Fed, monetary policy, interest rates, and inflation is quite limited and heterogeneous (Kumar et al., 2015; Binder, 2017a; Coibion et al., 2019; Coibion, Gorodnichenko et al., 2020), and that neither households’ nor firms’ expectations…”
• Incomplete Information in Macroeconomics: Accommodating Frictions in Coordination (2016, unknown): “Afrouzi et al. (2015) and Coibion et al. (2015) document widespread dispersion in firms’ beliefs about macroeconomic conditions, especially inflation. Coibion and Gorodnichenko (2015) use the relationship between ex-post mean forecast errors and the ex-ante revisions in the average forecast to test ”