Accurate, Focused Research on Law, Technology and Knowledge Discovery Since 2002

You Are Here: Home » Archives: July 2011

Daily Archives: July 18, 2011

How do inflation expectations form? New insights from a high-frequency survey

by on

How do inflation expectations form? New insights from a high-frequency survey – by Gabriele Galati, Peter Heemeijer and Richhild Moessner, BIS Working Papers No 349, July 2011

  • “We provide new insights on the formation of inflation expectations – in particular at a time of great financial and economic turmoil – by evaluating results from a survey conducted from July 2009 through July 2010. Participants in this survey answered a weekly questionnaire about their short-, medium- and long-term inflation expectations. Participants received common information sets with data relevant to euro area inflation. Our analysis of survey responses reveals several interesting results. First, our evidence is consistent with long-term expectations having remained well anchored to the ECB’s definition of price stability, which acted as a focal point for long-term expectations. Second, the turmoil in euro area bond markets triggered by the Greek fiscal crisis influenced short- and medium-term inflation expectations but had only a very small impact on long-term expectations. By contrast, longterm expectations did not react to developments of the euro area wide fiscal burden. Third, participants changed their expectations fairly frequently. The longer the horizon, the less frequent but larger these changes were. Fourth, expectations exhibit a large degree of timevariant non-normality. Fifth, inflation expectations appear fairly homogenous across groups of agents at the shorter horizon but less so at the medium- and long-term horizons.”

    • New GAO Reports: Ballistic Missile Defense,Coast Guard Civil Rights Directorate, TARP, World Trade Center Health Program

    by on

    Ballistic Missile Defense – Actions Needed to Improve Training Integration and Increase Transparency of Training Resources, GAO-11-625, July 18, 2011 Coast Guard – Civil Rights Directorate Can Enhance Workforce Restructuring Efforts, GAO-11-718, July 18, 2011 Troubled Asset Relief Program, The Government’s Exposure to AIG Following the Company’s Recapitalization, GAO-11-716, July 18, 2011 World Trade Center… Continue Reading

    BIS: Local currency bond markets and the Asian Bond Fund 2 Initiative

    by on

    Local currency bond markets and the Asian Bond Fund 2 Initiative, Bank for International Settlements, July 14, 2011 “The eight local currency government bond markets in which the ABF2 invests have made significant strides since the fund’s inception in 2005. Liquidity has improved considerably in most of these markets and yield curves have become increasingly… Continue Reading

    UK Office for Budget Responsibility: Fiscal sustainability report, July 2011

    by on

    “The Office for Budget Responsibility was created in 2010 to provide independent and authoritative analysis of the UK’s public finances. It is one of a growing number of official independent fiscal watchdogs around the world.” Fiscal sustainability report – July 2011 – The first FSR was published on 13 July 2011. The main document and… Continue Reading