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The Anchoring of Inflation Expectations in the Short and in the Long Run

Dieter Nautz (), Aleksei Netsunajew and Till Strohsal

Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: We introduce structural VAR analysis as a tool for investigating the anchoring of inflation expectations. We show that U.S. consumers’ inflation expectations are anchored in the long run because macro-news shocks are long-run neutral for long-term inflation expectations. The identification of structural shocks helps to explain why inflation expectations deviate from the central bank’s target.

JEL-codes: E31 E52 E58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-cta, nep-mac and nep-mon
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168075

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