Evolving perceptions of the European Central Bank

The New York Fed Staff Report 'Establishing credibility: Evolving perceptions of the European Central Bank' published November 2005 presents an empirical framework that uses high-frequency data to test for persistent variation in market perceptions of central bank inflation aversion.

The perceptions of a central bank's inflation aversion may reflect institutional structure or, more dynamically, the history of its policy decisions. In this paper, we present a novel empirical framework that uses

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