Inflation expectations: Review and evidence

Ayhan Kose, Hideaki Matsuoka, Ugo Panizza and Dana Vorisek

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: This paper presents a comprehensive examination of the determination and evolution of inflation expectations, with a focus on emerging market and developing economies (EMDEs). The results suggest that long-term inflation expectations in EMDEs are not as well anchored as those in advanced economies, despite notable improvements over the past two decades. Indeed, in EMDEs, long-term inflation expectations are more sensitive to both domestic and global inflation shocks. However, EMDEs tend to be more successful in anchoring inflation expectations in the presence of an inflation targeting regime, high central bank transparency, strong trade integration, and a low level of public debt.

Keywords: inflation; inflation expectations; monetary policy; emerging markets; developing economies (search for similar items in EconPapers)
JEL-codes: E31 E37 E40 E50 (search for similar items in EconPapers)
Pages: 63 pages
Date: 2019-03
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://cama.crawford.anu.edu.au/sites/default/fil ... _panizza_vorisek.pdf (application/pdf)

Related works:
Working Paper: Inflation Expectations: Review and Evidence (2019)
Working Paper: Inflation Expectations: Review and Evidence (2019)
Working Paper: Inflation Expectations: Review and Evidence (2019)
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:een:camaaa:2019-29

Access Statistics for this paper

More papers in CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University Contact information at EDIRC.
Bibliographic data for series maintained by Cama Admin ().