The Information Content of Survey Data on Expected Price Developments for Monetary Policy

Optimal monetary policy in the Euro area in the presence of heterogeneity

“…At the same time, these di¤erentials can be partly attributed to structural di¤erences across member countries, for example in price and wage-setting mechanisms and in consumption behavior patterns as re ‡ected in the coe¢ cients of the Phillips and the aggregate demand curves respectively. On the one hand, evidence on the estimated structural parameters of the Phillips curve by Gerberding (2001), Jondeau and Le Bihan (2005), Rumler (2005), Benigno and López-Salido (2006), Korenok et al (2006) and Leith and Malley (2007) show large heterogeneity of the current member countries which can be explained by divergence in the degree of price stickiness or forward-looking behavior in price setting. For example, the slope of the Phillips curve ranges between 0.0003 and 0.3 in these studies.…”

Central bank communication and expectations: Evidence for inflation‐targeting economies

“…A relatively high level of credibility is confirmed for IT central banks, although it does not necessarily occur shortly after the introduction of new monetary frameworks; for example, the central banks of Romania and Turkey were not perceived as credible immediately after the implementation of the new framework (Levieuge et al, 2018). For both subsamples, the effects for professional forecasters are expected to be stronger, as professionals exhibit a more remarkable ability to process economic information, including central bank announcements, and to produce more accurate and forward‐looking forecasts (Gerberding, 2001; Łyziak, 2014).…”