Long-term inflation expectations in the Euro area (EA) remained well anchored during the global financial crisis. Less is known about the following period. By investigating whether inflation expectations have become sensitive to the arrival of economic news, this article empirically analyzes the behavior of inflation expectations in the EA during the most recent period. It finds evidence that the de-anchoring of expectations started in December 2011 and never reversed. This is in line with the more aggressive stance held by the European Central Bank (ECB) in the following months as well as with the pattern of ECB Professional Forecasters’ expectations.

When did inflation expectations in the Euro area de-anchor? / Fracasso, Andrea; Probo, Rocco. - In: APPLIED ECONOMICS LETTERS. - ISSN 1350-4851. - 2017:24(20)(2017), pp. 1481-1485. [10.1080/13504851.2017.1287846]

When did inflation expectations in the Euro area de-anchor?

Fracasso, Andrea;
2017

Abstract

Long-term inflation expectations in the Euro area (EA) remained well anchored during the global financial crisis. Less is known about the following period. By investigating whether inflation expectations have become sensitive to the arrival of economic news, this article empirically analyzes the behavior of inflation expectations in the EA during the most recent period. It finds evidence that the de-anchoring of expectations started in December 2011 and never reversed. This is in line with the more aggressive stance held by the European Central Bank (ECB) in the following months as well as with the pattern of ECB Professional Forecasters’ expectations.
24(20)
Fracasso, Andrea; Probo, Rocco
When did inflation expectations in the Euro area de-anchor? / Fracasso, Andrea; Probo, Rocco. - In: APPLIED ECONOMICS LETTERS. - ISSN 1350-4851. - 2017:24(20)(2017), pp. 1481-1485. [10.1080/13504851.2017.1287846]
File in questo prodotto:
File Dimensione Formato  
FracassoProbo_inflationexpectations_deanchor_AEL2017_def.pdf

Solo gestori archivio

Descrizione: Articolo
Tipologia: Versione editoriale (Publisher’s layout)
Licenza: Tutti i diritti riservati (All rights reserved)
Dimensione 859.65 kB
Formato Adobe PDF
859.65 kB Adobe PDF   Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11572/177477
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 9
  • ???jsp.display-item.citation.isi??? 8
social impact