Because it seems quite unlikely that changes in inflation could persist indefinitely unless long-run expectations of inflation also changed, I interpret the StockWatson finding as consistent with the view that inflation expectations have become much more anchored since the early 1980s.
Jean-Claude Trichet: The integration of European financial markets Speech by Mr Jean-Claude Trichet, President of the European Central Bank, at the Deutsche Börse’s New Year’s Reception 2004, Frankfurt am Main, 26 January 2004. *  *  *  Introduction Ladies and gentlemen, Thanks very much for having invited me here today for the Deutsche Börse’s New Year Reception.