Inflation expectations and monetary policy: what have we learned and to what end?

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Authors: Olivier Coibion, Yuriy Gorodnichenko
Cited by: 2
References: 43

Abstract

Summary We review recent research and experiences linking inflation and expectations, emphasizing what has been learned since 2020. One clear lesson is that the inflation expectations of most economic agents have been and remain unanchored. The unanchored nature of inflation expectations, in combination with supply shocks, can explain much of the inflation surge and subsequent disinflation when viewed through the lens of an expectations-augmented Phillips curve, both in the United States and in other parts of the world.

Fields of Study & Subjects

Monetary Policy and Economic Impact Economic Theory and Policy Economic financial and policy analysis

Publication details

Journal / source
Econometrics Journal
Publisher
Oxford University Press (OUP)
Publication date
11 March 2026
Language
EN