IDEAS home Printed from https://ideas.repec.org/a/cai/reofsp/reof_174_0149.html
   My bibliography  Save this article

Partie III. La révision des cibles d’inflation de la Fed et de la BCE

Author

Listed:
  • Christophe Blot
  • Caroline Bozou
  • Paul Hubert

Abstract

Both the Federal Reserve and the European Central Bank have announced revisions to their inflation targets in 2020 and 2021, respectively. In this paper, we analyse and compare the effects of these decisions by the two central banks on long-term inflation expectations as measured on the financial markets. We analyse both how this change was perceived on the day of the announcement and its effect on the dynamics of inflation expectations, their volatility and how they?ve responded to economic shocks since the announcement. The main results are as follows: the ECB?s announcement of its revised target had a negative impact on inflation expectations, whereas the Fed?s announcement had a positive impact. Moreover, while the Fed?s announcement has changed the dynamics of inflation expectations (higher average level and weaker autoregressive process), the ECB?s announcement has not impacted the dynamics, at least so far. Finally, the response of inflation expectations to monetary or financial policy shocks has not been influenced by these announcements, nor has the volatility of inflation expectations.

Suggested Citation

  • Christophe Blot & Caroline Bozou & Paul Hubert, 2021. "Partie III. La révision des cibles d’inflation de la Fed et de la BCE," Revue de l'OFCE, Presses de Sciences-Po, vol. 174(4), pages 149-172.
    • Handle: RePEc:cai:reofsp:reof_174_0149
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=REOF_174_0149
    Download Restriction: free
    File URL: http://www.cairn.info/revue-de-l-ofce-2021-4-page-149.htm
    Download Restriction: free
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:reofsp:reof_174_0149. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-de-l-ofce.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.