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What to expect from inflation expectations: theory, empirics and policy issues

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  • Luigi Bonatti,
  • Andrea Fracasso
  • Roberto Tamborini

Abstract

We examine the role of inflation expectations in conditioning monetary policy, addressing three of its facets. The first concerns the channels through which inflation expectations impinge upon actual inflation, and their policy implications. The second facet regards the technical and empirical issues involved in keeping track of inflation expectations for monetary policy purposes. The final facet is an assessment of inflation expectations vis-à-vis the current upsurge of inflation, wondering whether, after being unanchored on the downside, can now become unanchored on the upside.

Suggested Citation

  • Luigi Bonatti, & Andrea Fracasso & Roberto Tamborini, 2021. "What to expect from inflation expectations: theory, empirics and policy issues," DEM Working Papers 2022/1, Department of Economics and Management.
    • Handle: RePEc:trn:utwprg:2022/1
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    References listed on IDEAS

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