The role of expectations and output in the inflation process: an empirical assessment

Jeffrey Fuhrer and Giovanni Olivei

Public Policy Brief, 2010

Abstract: This brief examines two issues of current interest concerning inflation: (1) whether \\"well-anchored\\" expectations will help to restrain inflation's decline and whether an \\"un-anchoring\\" of expectations could lead to undesirably high inflation and (2) to what extent output (or utilization) gaps are useful components of empirical models of inflation and, if they are useful, to what extent current gaps might counterbalance the effect of expectations on inflation. The goals of conducting this examination are to articulate a reasonably coherent framework for the discussion, highlight the key areas of uncertainty, and provide new empirical evidence that sheds some light on these areas.

Keywords: Inflation; (Finance) (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (27)

Downloads: (external link)
http://www.bostonfed.org/economic/ppb/2010/ppb102.pdf (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:fip:fedbpb:y:2010:n:10-2

Ordering information: This journal article can be ordered from
boston.library@bos.frb.org

Access Statistics for this article

More articles in Public Policy Brief from Federal Reserve Bank of Boston Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Spozio (catherine.spozio@bos.frb.org).