Deflation risk in the euro area and central bank credibility

Gabriele Galati, Zion Gorgi (), Richhild Moessner and Chen Zhou ()

Economics Letters, 2018, vol. 167, issue C, 124-126

Abstract: We analyze a new option-based indicator of market perceptions of euro area deflation risks. We find that during 2010–2015, long-term deflation risks became slightly more sensitive to oil price changes and inflation surprises, suggesting a subtle weakening in anchoring.

Keywords: Deflation; Inflation expectations; Monetary policy (search for similar items in EconPapers)
JEL-codes: E31 E44 E52 E58 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:167:y:2018:i:c:p:124-126

DOI: 10.1016/j.econlet.2018.03.028

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