Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77710
Authors: 
Istrefi, Klodiana
Piloiu, Anamaria
Year of Publication: 
2013
Series/Report no.: 
CESifo Working Paper 4294
Abstract: 
Theory and evidence suggest that in an environment of well-anchored expectations, temporary news or shocks to economic variables, should not affect agents' expectations of inflation in the long term. Our estimated structural VARs show that both long- and short-term inflation expectations are sensible to policy-related uncertainty shocks. A rise of long-term inflation expectations in times of economic contraction, in response to such shocks, suggests that heightened policy uncertainty observed during the recent years indeed raises concerns about future inflation. Furthermore, both monetary and fiscal policy-related uncertainties are significant for the negative dynamics in citizens' trust in the ECB.
Subjects: 
policy uncertainty
central banks
inflation expectations
structural VAR
JEL: 
E02
E31
E58
E63
P16
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.