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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
    as

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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
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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.
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    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. Montes, Gabriel Caldas & Nicolay, Rodolfo & Pereira, Flavio, 2022. "Does fiscal sentiment matter for sovereign risk?," The Quarterly Review of Economics and Finance, Elsevier, vol. 86(C), pages 18-30.

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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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