How anchored are inflation expectations in EMU countries?

Carin Cruijsen and Maria Demertzis

Economic Modelling, 2011, vol. 28, issue 1, 281-298

Abstract: Anchored inflation expectations help stabilize inflation. Previous results indicate that monetary policy has been effective in breaking the link between actual and expected inflation at the euro area level. In this paper we examine whether this is also true at the national level. We define the ‘disconnect’ between inflation and inflation expectations and then proceed to examine the extent to which this disconnect exists for a number of euro area countries. Our findings suggest that for some countries, their own inflation experiences still affect national inflation expectations, and certainly more by comparison to how they affect the aggregate euro area level.

Keywords: Inflation expectations; Monetary policy; EMU; Inflation; ECB (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:1:p:281-298

DOI: 10.1016/j.econmod.2010.09.001

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