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Inflation expectations: models and measures

Author

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  • Cinzia Alcidi
  • Daniel Gros
  • Farzaneh Shamsfakhr

Abstract

Inflation expectations are key inputs into monetary policy, but they also represent one of the most difficult variables to measure. Inflation expectations are particularly difficult to pin down in a low inflation environment in which important relative prices experience large changes. The available measures of inflation expectations differ widely across different sources and could be used at most as an additional element in monetary policy decisions, but not as a target.

Suggested Citation

  • Cinzia Alcidi & Daniel Gros & Farzaneh Shamsfakhr, 2021. "Inflation expectations: models and measures," Politica economica, Società editrice il Mulino, issue 3, pages 389-406.
    • Handle: RePEc:mul:je8794:doi:10.1429/103706:y:2021:i:3:p:389-406
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