Economic Brief
2008
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PrintOctober 2008, No. 08-01
Inflation Expectations: Their Sources and Effects
Yash P. Mehra
Devin Reilly
Our Research Focus: Inflation and Monetary Policy
Topics:
Inflation, Monetary Policy
Shocks to the macroeconomy can affect the public's expectations about inflation. But if the Federal Reserve monitors those expectations carefully and vigilantly pursues price stability, it can establish credibility and keep inflation in check.
Additional Resources
Mehra, Yash and Christopher Herrington. "On the Sources of Movements in Inflation Expectations: A Few Insights from a VAR Model." Federal Reserve Bank of Richmond Economic Quarterly 94, no. 2 (Spring 2008): 121-146.
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