Prague Economic Papers 2017, 26(3):286-299 | DOI: 10.18267/j.pep.614

Central Banks Inflation Forecast and Expectations. A Comparative Analysis

Magdalena Szyszko

WSB University in Poznan, Finance and Banking Faculty, Poznan, Poland (magdalena.szyszko@wsb.poznan.pl)

The question on the inflation expectations management is one of the most important ones from the central bank's point of view. The inflation forecast can be a helpful tool of managing expectations. If it actually is, the interdependences of the inflation forecast and expectations can be observed. The existence of such interdependences opens the field for determining the preconditions that might support expectations formation. The hypothesis assumes that associations of inflation forecasts and inflation expectations depend on the central bank's credibility and consistency in inflation forecast targeting. The research covers the Czech National Bank, the National Bank of Hungary, the National Bank of Poland and Sveriges Riksbank. The research combines qualitative and quantitative methods. The research uses survey-based expectations quantified with probabilistic method. The main finding is that the relatively high level of credibility and consistency in inflation forecast targeting is not sufficient to achieve strong interdependences of inflation forecast and expectations.

Klíčová slova: inflation forecasts, inflation forecast targeting, inflation expectations, central bank credibility

JEL classification: E52, E58, E61

Zveřejněno: 1. červen 2017  Zobrazit citaci