Mankiw, Reis and Wolfers documented substantial disagreement among both consumers and professional economists about expected future inflation. The extent of disagreement in the data evolves over time, together with the state of the economy. A high dispersion of inflation expectations is positively correlated with a high level of inflation, and with a high variance in recent inflation.
Since I took up office I have been trying to correct things that need correcting and to promote the process of streamlining and modernizing the Bank. In these efforts I am joined by my colleagues, in particular the Director General of the Bank, Jacob Danon.