As is the case with the yield curve and interest rate futures, it is useful to compare estimates of expected inflation derived from breakeven inflation data with estimates of expected inflation obtained from surveys—for example, the expected inflation over the  14 Well before the launch of the TIPS market, Friedman (1984) stressed the benefits to monetary policy analysis that would arise from the availability of market-based estimates of longer-term inflation expectations, and he contrasted that situation with the one then prevailing, in which it was difficult to ascertain the real yields implied by the market’s longer-term nominal yields.
If there were political willingness to change the framework, we would be happy to engage and, based on our experience, help clarify how best to support the other institutions while safeguarding our independence.5  Accountability Independence does not mean arbitrariness. The ECB was given a democratic mandate. It is held accountable for acting in line with this mandate, both democratically and legally.