Economics at your fingertips  

Three dimensions of central bank credibility and inferential expectations: The Euro zone

Timo Henckel (), Gordon D. Menzies, Peter Moffatt and Daniel Zizzo

Journal of Macroeconomics, 2019, vol. 60, issue C, 294-308

Abstract: We use the behavior of inflation among Eurozone countries to provide information about the degree of credibility of the European Central Bank (ECB) since 2008. We define credibility along three dimensions–official target credibility, cohesion credibility and anchoring credibility–and show in a new econometric framework that the latter has deteriorated in recent history; that is, price setters are less likely to rely on the ECB target when forming inflation expectations.

Keywords: Credibility; Inflation; Expectations; Anchoring; Monetary union; Inferential expectations (search for similar items in EconPapers)
JEL-codes: C51 D84 E31 E52 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Three Dimensions of Central Bank Credibility and Inferential Expectations: The Euro Zone (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.jmacro.2019.01.012

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2024-04-07
Handle: RePEc:eee:jmacro:v:60:y:2019:i:c:p:294-308