The role of the ECB’s asset purchases in preventing a potential de-anchoring of longer-term inflation expectations

Günter Coenen and Sebastian Schmidt

Research Bulletin, 2016, vol. 25

Abstract: Longer-term inflation expectations are generally seen to be an indicator of the credibility of central banks in achieving their price stability objectives and should, therefore, remain solidly “anchored”. In this article, we argue on the basis of counterfactual analysis that the ECB’s expanded asset purchase programme has been important in preventing a potential de-anchoring of inflation expectations and a further prolongation of the period of low inflation outcomes. JEL Classification: E31, E32, E37, E52, E58

Keywords: asset purchases; DSGE modelling; inflation expectations (search for similar items in EconPapers)
Date: 2016-07
Note: 241047
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Citations: View citations in EconPapers (11)

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