After all, if monetary policy takes some time – several years – to have its full effect on the economy and inflation, forecasts have to be at the centre of things, don’t they? BIS Review 64/2006  3  There is no doubt that the process of forming the forecast is central to the conduct of policy under an inflation target.
Deflating Inflation Expectations: The Implications of Inflation’s Simple Dynamics, report prepared for the 2017 U.S. Monetary Policy Forum, sponsored by the Initiative on Global Markets at the University of Chicago Booth School of Business, held in New York, March 3, https://research.chicagobooth.edu/%7E/media/806fc2ded9644b5da99518d2b07cc6 37.pdf. Chung, Hess, Etienne Gagnon, Taisuke Nakata, Matthias Paustian, Bernd Schlusche, James Trevino, Diego Vilán, and Wei Zheng (2019).