Abstract:The analysis of inflation expectations is extended by distinguishing between short-term and long-term expectations using data from financial markets. The term structure of inflation expectation is explicitly considered. The adaptive expectations hypothesis obtains strong support from the data, while the Frenkel hypothesis can dearly be rejected. This result is clearly at variance with those obtained in Lahiri (1981).
Set email alert for when this publication receives citations?
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.