Three Dimensions of Central Bank Credibility and Inferential Expectations: The Euro Zone
Timo Henckel (),
Gordon D. Menzies (),
Peter Moffat () and
Additional contact information
Gordon D. Menzies: University of Technology Sydney & Centre for Applied Macroeconomic Analysis
Peter Moffat: University of East Anglia
Authors registered in the RePEc Author Service: Peter Grant Moffatt ()
No 2019/02, Working Paper Series from Economics Discipline Group, UTS Business School, University of Technology, Sydney
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; infl?ation; expectations; anchoring; monetary union; inferential expectations (search for similar items in EconPapers)
JEL-codes: C51 D84 E31 E52 (search for similar items in EconPapers)
Pages: 29 pages
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://www.uts.edu.au/sites/default/files/2019-06 ... 0working%20paper.pdf (application/pdf)
Journal Article: Three dimensions of central bank credibility and inferential expectations: The Euro zone (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:uts:ecowps:2019/02
Access Statistics for this paper
More papers in Working Paper Series from Economics Discipline Group, UTS Business School, University of Technology, Sydney PO Box 123, Broadway, NSW 2007, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Duncan Ford ().