Your browser is not supported

Our website does not support the browser you are using. For a better browsing experience update to a compatible browser like the latest browsers from Chrome, Firefox and Safari.

Inflation expectations curve: a tool for monitoring inflation expectations

Michelle Lewis

Inflation expectations play an important role in monetary policy, where well-anchored expectations make it easier than otherwise to achieve the inflation target. This Note uses various surveyed measures of inflation expectations and yield curve modelling techniques to develop a framework for monitoring inflation expectations. From the resulting expectations curves, measures of the perceived inflation target focus and the expected time for inflation to return to target are estimated.