The aim of our study is to present theoretical reasons staying behind the interest of contemporary macroeconomics in inflation expectations and to present the results of empirical analysis of the influence of current inflation on consumers' inflation expectations in various countries. We employ various measures of inflation expectations in our study (quantified probability measures based on qualitative survey questions, measures derived from quantitative survey questions, Phi statistics describing the distribution of answers to the qualitative survey question) in order to make a synthesis of the conclusions drawn. Our results suggest that the choice of the measurement method significantly influences the conclusions, however the results of the analysis of long-term characteristics of expectations are much more robust than it is the case with short-term characteristics.

Keywords: inflation expectations, surveys, rationality.

  Tomasz Łyziak, Ewa Stanisławska, Open Market Operations in Australia - plik pdf; (2.3 MB)