Another important topic is how inflation expectations are formed (Chart 3). Standard New Keynesian models used in modern macroeconomics assume the convergence of the inflation rate with the inflation target. This assumes that inflation expectations are well-anchored to the target rate or converging to it soon.
I welcome all participants to this meeting, aware that some of you are visiting Malawi, the warm heart of Africa for the first time. I wish you all a pleasant stay.