Inflation Expectations : Review and Evidence
This paper presents a comprehensive examination of the determination and evolution of inflation expectations, with a focus on emerging market and developing economies (EMDEs). The results suggest that long-term inflation expectations in EMDEs are n...
| Main Authors: | , , , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/723151553110873395/Inflation-Expectations-Review-and-Evidence http://hdl.handle.net/10986/31433 |
| Summary: | This paper presents a comprehensive
examination of the determination and evolution of inflation
expectations, with a focus on emerging market and developing
economies (EMDEs). The results suggest that long-term
inflation expectations in EMDEs are not as well anchored as
those in advanced economies, despite notable improvements
over the past two decades. Indeed, in EMDEs, long-term
inflation expectations are more sensitive to both domestic
and global inflation shocks. However, EMDEs tend to be more
successful in anchoring inflation expectations in the
presence of an inflation targeting regime, high central bank
transparency, strong trade integration, and a low level of
public debt. |
|---|