14 Many changes not directly related to policy might nonetheless have been precipitated by the improvement in policy. For example, Pfajfar and Roberts, (2018) present evidence that when inflation is more stable, people simply pay less attention to it and that this could help account for changes in the Phillips curve relationship. - 10 inflation expectations.
And we are aware that it could be very costly if those expectations were to drift materially. As you probably know from our public communications, we carefully monitor survey- and market-based proxies for expectations, and we do not see evidence of a material shift in longer-term expectations (figure 6). The survey measures have been particularly steady for some time.