Taming inflation by anchoring inflation expectations

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  • Economic and Political Weekly Vol.58; No.22 - 3 June 2023 pp. 33-41
Subject(s): Online resources: Summary: 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.
Item type: Journal Articles
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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.

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