They argue that when the public disagrees about the inflation outlook, market participants rely more than usual on interpreting central bank actions to draw inferences about the true state of inflation.4 They may then interpret an unexpected loosening of monetary policy as a policy response to a worsening economic outlook and adjust their inflation expectations accordingly.
You are to be commended for the work you do, and I am sure you also derive immense personal fulfillment from your involvement with your organisation. This evening I want to talk about how individuals and small enterprises are coping with the economic crisis, as far as I can tell.