Disagreement over inflation expectations weakens monetary policy – Bundesbank paper

Research uses data from Fed’s survey of professional forecasters from 1968 to 2017

bundesbank
The Deutsche Bundesbank

Empirical data from the US show that monetary policy is weakened if there is a high level of disagreement about the future course of inflation, a discussion paper published by the Deutsche Bundesbank argues.

In “Disagreement and monetary policy”, Elisabeth Falck, Mathias Hoffmann and Patrick Hürtgen say that New Keynesian dispersed-information models predict this result. They test this hypothesis by estimating the state-dependent effects of monetary policy for different levels of disagreement

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.