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Does the central banker type affect inflation expectations?

Author

Listed:
  • Helder Ferreira de Mendonça

    (Fluminense Federal University and CNPq)

  • Pedro Mendes Garcia

    (Institute for Applied Economic Research)

Abstract

Based on the Brazilian data, this paper shows empirical evidence regarding the effect of central banker type (weak or strong) on the content of survey-based and market-based inflation expectations for explaining realized inflation. The findings indicate that the content of survey-based and market-based inflation expectations explaining the realized inflation is sensitive to the central banker type.

Suggested Citation

  • Helder Ferreira de Mendonça & Pedro Mendes Garcia, 2021. "Does the central banker type affect inflation expectations?," Economics Bulletin, AccessEcon, vol. 41(1), pages 93-102.
    • Handle: RePEc:ebl:ecbull:eb-20-00225
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    File URL: http://www.accessecon.com/Pubs/EB/2021/Volume0/EB-21-V41-I1-P9.pdf
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    References listed on IDEAS

    as
    1. David H. Romer & Christina D. Romer, 2000. "Federal Reserve Information and the Behavior of Interest Rates," American Economic Review, American Economic Association, vol. 90(3), pages 429-457, June.
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    3. Fabio Canova & Luca Gambetti, 2010. "Do Expectations Matter? The Great Moderation Revisited," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(3), pages 183-205, July.
    4. G. C. Montes & L. V. Oliveira & A. Curi & R. T. F. Nicolay, 2016. "Effects of transparency, monetary policy signalling and clarity of central bank communication on disagreement about inflation expectations," Applied Economics, Taylor & Francis Journals, vol. 48(7), pages 590-607, February.
    5. Olivier Armantier & Wändi Bruine de Bruin & Simon Potter & Giorgio Topa & Wilbert van der Klaauw & Basit Zafar, 2013. "Measuring Inflation Expectations," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 273-301, May.
    6. Helder de Mendonca, 2007. "Towards credibility from inflation targeting: the Brazilian experience," Applied Economics, Taylor & Francis Journals, vol. 39(20), pages 2599-2615.
    7. José Vicente & Daniela Kubudi, 2018. "Extracting inflation risk premium from nominal and real bonds using survey information," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 45(2), pages 307-325, May.
    8. Pedersen, Michael, 2015. "What affects the predictions of private forecasters? The role of central bank forecasts in Chile," International Journal of Forecasting, Elsevier, vol. 31(4), pages 1043-1055.
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    Citations

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    Cited by:

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    2. Gabriel Caldas Montes & Victor Maia, 2023. "The reaction of disagreements in inflation expectations to fiscal sentiment obtained from information in official communiqués," Bulletin of Economic Research, Wiley Blackwell, vol. 75(4), pages 828-859, October.

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    More about this item

    Keywords

    inflation expectations; survey of forecasters; monetary policy; central bank;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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