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Assessing the risk to inflation from inflation expectations

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  • Anderson, Gareth

    (Bank of England)

  • Maule, Becky

    (Bank of England)

Abstract

Well-anchored inflation expectations play an important role in the achievement of the Monetary Policy Committee’s (MPC’s) 2% inflation target. At the moment, available measures are consistent with inflation expectations remaining well anchored to the MPC’s target. Empirical work suggests that unexplained ‘shocks’ to households’ expectations may have had a significant impact on inflation over the past.

Suggested Citation

  • Anderson, Gareth & Maule, Becky, 2014. "Assessing the risk to inflation from inflation expectations," Bank of England Quarterly Bulletin, Bank of England, vol. 54(2), pages 148-162.
    • Handle: RePEc:boe:qbullt:0139
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    References listed on IDEAS

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    6. Harimohan, Rashmi, 2012. "How has the risk to inflation from inflation expectations evolved?," Bank of England Quarterly Bulletin, Bank of England, vol. 52(2), pages 114-123.
    7. Christopher D. Carroll, 2003. "Macroeconomic Expectations of Households and Professional Forecasters," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 269-298.
    8. Nelson, Charles R & Siegel, Andrew F, 1987. "Parsimonious Modeling of Yield Curves," The Journal of Business, University of Chicago Press, vol. 60(4), pages 473-489, October.
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    Cited by:

    1. Ivan Yotzov & Nicholas Bloom & Philip Bunn & Paul Mizen & Gregory Thwaites, 2024. "The Speed of Firm Response to Inflation," Discussion Papers 2425, Centre for Macroeconomics (CFM).
    2. Pedro Elosegui & Máximo Sangiácomo, 2024. "Firm's Price Expectations: An Empirical Analysis using BCRAs' Survey of Business Economic Perspectives," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(83), pages 97-116, May.
    3. Łyziak, Tomasz & Paloviita, Maritta, 2017. "Anchoring of inflation expectations in the euro area: Recent evidence based on survey data," European Journal of Political Economy, Elsevier, vol. 46(C), pages 52-73.
    4. Carlos Medel, 2018. "An econometric analysis on survey-data-based anchoring of inflation expectations in Chile," Notas de Investigación Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 21(2), pages 128-152, August.
    5. Zhu, Yanhui & Fan, Jingwen & Tucker, Jon, 2018. "The impact of monetary policy on gold price dynamics," Research in International Business and Finance, Elsevier, vol. 44(C), pages 319-331.
    6. International Monetary Fund, 2016. "Brazil: Selected Issues," IMF Staff Country Reports 2016/349, International Monetary Fund.
    7. Domit, Sílvia & Jackson, Chris & Roberts-Sklar , Matt, 2015. "Do inflation expectations currently pose a risk to inflation?," Bank of England Quarterly Bulletin, Bank of England, vol. 55(55), pages 165-180.
    8. Sami Oinonen & Maritta Paloviita, 2017. "How Informative are Aggregated Inflation Expectations? Evidence from the ECB Survey of Professional Forecasters," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 13(2), pages 139-163, November.

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