Bernanke on Inflation Expetations (fg)

I found a good review by Ben Bernanke on the inflation-expectations debate. The FED chairman draws a broad picture on the formation of inflation expectations in the context of learning. Therby, learning implications show that inflation expectations can vary over time and may give rise to communication-related issues. Furthermore, he points out that in some countries inflation expectations remain imperfectly anchored while in other currency areas actual inflation does not tend to move inflation expectations as reported in the difference in yields between nominal and inflation-indexed-bonds. Here we go.