3  For a comprehensive description of the APP, its impact and remarks on the evaluation of possible unintended consequences see: Ignazio Visco, “Global Monetary System: Our Currency, Your Problem?”, Remarks to the Monetary Policy Panel, UBS European Conference, London, 11 November 2015. 4  The indicator is based on the probability of co-movement of long-term and short-term inflation expectations.
Technically, it is calculated as an odds ratio over a rolling window of 250 working days and ranges from zero to infinity; an increase indicates a closer link between sharp decreases in short-term and in long-term expectations; low values indicate that long-term expectations are better anchored.