Download This PaperThe Pass-Through from Short-Horizon to Longhorizon Inflation Expectations
12 Pages Posted: 17 Apr 2020
Date Written: March 25, 2020
Abstract
This paper summarises ongoing work that investigates the pass-through from shorthorizon and long-horizon inflation forecasts as a way to assess the anchoring of inflation expectations across a sample of 44 economies. It reports an overall decline in the pass-through, with the share of economies having anchored expectations increasing over time. Inflation targeting appears to have played a modest role in improved anchoring. Surprisingly, recent periods with low inflation out-turns are correlated with a decreased pass-through, suggesting that longer-term expectations remain well anchored.
Full Publication: Inflation Dynamics in Asia and the Pacific
Keywords: consensus forecasts, inflation expectations anchoring
JEL Classification: E31, E58
Suggested Citation: Suggested Citation