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Taming inflation by anchoring inflation expectations

Sitikantha Pattanaik G V Nadhanael Silu Muduli

Taming inflation by anchoring inflation expectations Economic and Political Weekly Vol.58; No.22 - 3 June 2023 pp. 33-41

By firmly anchoring inflation expectations, monetary policy can prevent a wage-price spiral and moderate the second-round effects of supply shocks, thereby avoiding an inferior macroeconomic outcome of lower growth and higher inflation.

Subjects--Uniform Titles:
Economics

Subjects--Topical Terms:
Banking
Finance
Money
Inflation expectations
Inflation Expectation Anchoring Index
Monetary policy

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