Deborah Gefang () (University of Lancaster) Gary Koop () (University of Strathclyde, Rimini Center for Economic Analysis.) Simon M. Potter () (Federal Reserve Bank of New York)
Additional information is available for the following
registered author(s):
This paper investigates the relationship between short term and long term ination expectations in the US and the UK with a focus on ination pass through (i.e. how changes in short term expecta- tions a¤ect long term expectations). An econometric methodology is used which allows us to uncover the relationship between ination pass through and various explanatory variables. We relate our empirical results to theoretical models of anchored, contained and unmoored ination expectations. For neither country do we nd anchored or unmoored ination expectations. For the US, contained ination ex- pectations are found. For the UK, our ndings are not consistent with the speci c model of contained ination expectations presented here, but are consistent with a more broad view of expectations being constrained by the existence of an ination target.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Rimini Centre for Economic Analysis in its series Working Paper Series with number
14-09.