Survey Measures of Expected U.S. Inflation

摘要: of real interest rates and cash flows for decisions concerning investment expenditures. International capital exchange rate movements hinge in large part on expected yield differentials across countries. The Federal Reserve needs reliable measures inflation to formulate gauge the thrust monetary policy. In fact, expectations have become more important Fed given diminished stability link between aggregates GDP expenditures since early 1980s, greater role which has been upon short-term implementation issue rationality expectations-that is, extent agents form without making systematic mistakes their beliefs about what will be-is important. If are formed rationally, labor financial markets strongly tend neutralize potential redistributive effects over time. Financial flow efficiently within national borders. Moreover, some stronger claims new classical macroeconomics, like claim that only unexpected policy actions