Coverart for item
The Resource Expectations' Anchoring and Inflation Persistence

Expectations' Anchoring and Inflation Persistence

Label
Expectations' Anchoring and Inflation Persistence
Title
Expectations' Anchoring and Inflation Persistence
Creator
Contributor
Author
Subject
Genre
Language
eng
Summary
Understanding the sources of inflation persistence is crucial for monetary policy. This paper provides an empirical assessment of the influence of inflation expectations' anchoring on the persistence of inflation. We construct a novel index of inflation expectations' anchoring using survey-based inflation forecasts for 45 economies starting in 1989. We then study the response of consumer prices to terms-of-trade shocks for countries with flexible exchange rates. We find that these shocks have a significant and persistent effect on consumer price inflation when expectations are poorly anchored. By contrast, inflation reacts by less and returns quickly to its pre-shock level when expectations are strongly anchored
Member of
Cataloging source
EBLCP
http://bibfra.me/vocab/lite/collectionName
IMF eLibrary
http://library.link/vocab/creatorName
Bems, Rudolfs
Index
no index present
Literary form
non fiction
Nature of contents
dictionaries
http://library.link/vocab/relatedWorkOrContributorName
  • Caselli, Francesca G
  • Grigoli, Francesco
http://library.link/vocab/subjectName
  • Inflation (Finance)
  • Inflation (Finance)
Label
Expectations' Anchoring and Inflation Persistence
Instantiates
Publication
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
  • Cover; Contents; 1 Introduction; 2 Measuring Ination Expectations' Anchoring; 2.1 Data; 2.2 Anchoring Metrics; 2.3 A Summary Anchoring Index; 3 Anchoring and Ination Persistence; 3.1 Terms-of-Trade Shocks; 3.2 Empirical Approach and Main Results; 3.3 Exchange Rate Depreciation and Pass-Through; 3.4 Robustness; 4 Conclusions; References; A Data Sample and Additional Results; List of Figures; 1 Alternative Anchoring Metrics; 2 Index of Ination Expectations' Anchoring, 1998-2017; 3 Distribution of the Index of Inflation Expectations' Anchoring
  • 13 Response of the Nominal Effective Exchange Rate to a Terms-of-Trade Shock, by Anchoring14 Marginal Effect on the Nominal Exchange Rate after 6 Months, by Anchoring; 15 Robustness Exercises-Response of Consumer Prices; A.1 Mean and Standard Deviation of Long-Term Ination Forecasts-Data Availability; A.2 Evolution of Anchoring Metrics, 1998-2017; List of Tables; A.1 Mean and Standard Deviation of Long-Term Ination Forecasts-Data Availability; A.2 Cumulative Response of Consumer Prices-Estimation Results; A.3 Response of Consumer Price Inflation-Estimation Results
  • 4 Index of Inflation Expectations' Anchoring-Cross-Country Heterogeneity5 Anchoring and Country Characteristics, 1989-2017; 6 Distribution of Commodity Terms-of-Trade Shocks; 7 Response of Consumer Prices to a Terms-of-Trade Shock, by Exchange Rate Regime; 8 Distribution of Anchoring Index among Floats; 9 Response of Consumer Prices to a Terms-of-Trade Shock, by Anchoring; 10 Marginal Effect on Consumer Prices after 6 Months, by Anchoring; 11 Response of Inflation to a Terms-of-Trade Shock, by Anchoring; 12 Response of the Nominal Exchange Rate to a Terms-of-Trade Shock, by Anchoring
Control code
1082208763
Dimensions
unknown
Extent
1 online resource (32 pages)
Form of item
online
Isbn
9781484392287
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Specific material designation
remote
System control number
(OCoLC)1082208763
Label
Expectations' Anchoring and Inflation Persistence
Publication
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
  • Cover; Contents; 1 Introduction; 2 Measuring Ination Expectations' Anchoring; 2.1 Data; 2.2 Anchoring Metrics; 2.3 A Summary Anchoring Index; 3 Anchoring and Ination Persistence; 3.1 Terms-of-Trade Shocks; 3.2 Empirical Approach and Main Results; 3.3 Exchange Rate Depreciation and Pass-Through; 3.4 Robustness; 4 Conclusions; References; A Data Sample and Additional Results; List of Figures; 1 Alternative Anchoring Metrics; 2 Index of Ination Expectations' Anchoring, 1998-2017; 3 Distribution of the Index of Inflation Expectations' Anchoring
  • 13 Response of the Nominal Effective Exchange Rate to a Terms-of-Trade Shock, by Anchoring14 Marginal Effect on the Nominal Exchange Rate after 6 Months, by Anchoring; 15 Robustness Exercises-Response of Consumer Prices; A.1 Mean and Standard Deviation of Long-Term Ination Forecasts-Data Availability; A.2 Evolution of Anchoring Metrics, 1998-2017; List of Tables; A.1 Mean and Standard Deviation of Long-Term Ination Forecasts-Data Availability; A.2 Cumulative Response of Consumer Prices-Estimation Results; A.3 Response of Consumer Price Inflation-Estimation Results
  • 4 Index of Inflation Expectations' Anchoring-Cross-Country Heterogeneity5 Anchoring and Country Characteristics, 1989-2017; 6 Distribution of Commodity Terms-of-Trade Shocks; 7 Response of Consumer Prices to a Terms-of-Trade Shock, by Exchange Rate Regime; 8 Distribution of Anchoring Index among Floats; 9 Response of Consumer Prices to a Terms-of-Trade Shock, by Anchoring; 10 Marginal Effect on Consumer Prices after 6 Months, by Anchoring; 11 Response of Inflation to a Terms-of-Trade Shock, by Anchoring; 12 Response of the Nominal Exchange Rate to a Terms-of-Trade Shock, by Anchoring
Control code
1082208763
Dimensions
unknown
Extent
1 online resource (32 pages)
Form of item
online
Isbn
9781484392287
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Specific material designation
remote
System control number
(OCoLC)1082208763

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