Banque de France research examines links between inflation and monetary policy

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A working paper published by the Bank de France on May 2 investigates the link between monetary policy, inflation expectations and the eventual consumer price inflation (CPI) rate in the US.

Using Livingston Survey data, authors Anindya Banerjee and Sheheryar Malik write that: "Our analysis has highlighted the anticipatory role played by agents within the economy. It may be difficult to pin down the impact of a particular policy precisely, since, if the policy move were seen to be credible or

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