Part of the academic literature assumes that policymakers or their staff form priors over the models and choose the approach which minimises average expected loss (Bayesian approach).
This would suggest that low-flation is no longer regarded as an anomaly, but increasingly as the norm. 29 Lower and less widely dispersed inflation expectations entail a risk they will become de-anchored, so that observed future inflation will be more likely to remain low. These trends are reflected in wage negotiations.