BoJ paper: inflation expectations do not match target
Agents only trust central bank to hit target in short to medium term
Inflation expectations in Japan fail to converge with the 2% target in the long run, according to a working paper published on January 14 by the Bank of Japan (BoJ).
Inflation expectations and monetary policy under disagreements by Yoshiyuki Nakazono was presented at a conference in November 2015. Nakazono studies the "dissonance" between forecasts by the BoJ and by other economic agents - both households and "experts".
The author finds that "information rigidities", or the sluggish updating of
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