UNBIASEDNESS AND RATIONALITY OF INFLATION EXPECTATIONS

ABSTRACT. Thirlwall and Barton report a positive relationship between inflation and growth in a cross section of industrial countries and a negative relationship in a cross section of seven developing countries. Visco evaluates the estimate of inflation expectations for both wholesale and consumer price changes, comparing them with those held by respondents to other surveys for different countries and with the forecasts generated by alternative predictors of the inflation process.