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dc.contributor.authorKelly, Rogeren_US
dc.description.abstractTwo major events have affected the monetary regime in the United Kingdom in recent years, namely the introduction of inflation targeting, and the granting of operational independence to the Bank of England. In this paper we examine what impact, if any, these events have had on inflation expectations. A series of Granger causality tests are used in order to examine the causal relationship between a measure of prices and inflation expectations. We find evidence that the introduction of inflation targeting caused both the general public and professionals to anchor their expectations, rather than basing them on current RPI inflation.en_US
dc.publisher|aBank of England, External Monetary Policy Committee Unit |cLondonen_US
dc.relation.ispartofseries|aExternal MPC Unit Discussion Paper |x24en_US
dc.titleThe causal relationship between inflation and inflation expectations in the United Kingdomen_US
dc.typeWorking Paperen_US

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