Long-run inflation expectations are vital for monetary policy. Anchoring them to inflation targets is essential for price stability, particularly in a world dealing with high inflation. This session's papers investigate asymmetric effects on macro aggregates, distributional impacts on mortgagors and homeowners, and co-movements in inflation expectations and term premium. Through empirical and theoretical analyses, these papers shed the light on the challenges central banks face in reaching their inflation targets.
Presenters:
Stefano Fasani (Lancaster University)
Sebastian Rast (De Nederlandsche Bank)
Elizaveta Lukmanova (Central Bank of Ireland)