Modeling the Dynamics of Inflation Compensation
AbstractThis paper investigates the relationship between short-term and long-term ination expectations using daily data on ination compen- sation. We use a exible econometric model which allows us to uncover this relationship in a data-based manner. We relate our ndings to the issue of whether ination expectations are anchored, unmoored or contained. Our empirical results indicate no support for either unmoored or rmly anchored ination expectations. Most evidence indicates that ination expectations are contained.
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Bibliographic InfoPaper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 15_09.
Date of creation: Jan 2009
Date of revision: Jan 2009
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