Rose Cunningham is Assistant Chief of the Advanced Economies Division in the International Economic Analysis Department. Dr. Cunningham manages a team that prepares economic forecasts on the euro area, Japan and other advanced economies and provides policy advice to Governing Council on issues related to the global outlook. Her research interests include monetary policy, real-financial linkages, business cycles and housing market cycles. She holds a PhD in economics from the Carleton University.
This article explores the role of inflation expectations in the conduct of monetary policy. It reviews the various measures of inflation expectations used by central banks, including surveys and market-based indicators, and considers their advantages and disadvantages. It examines the critical role of inflation expectations in the framework that central banks use to understand, forecast, and control inflation. It also looks at their role as an indicator of central bank credibility. The behaviour of inflation expectations over the past two years is analyzed and policy conclusions are offered.Topics: Inflation targets; Monetary policy implementation
Housing wealth is a large component of total wealth and plays an important role in aggregate business cycles. In this paper, we explore data on real house price cycles at the aggregate level and city level for the United States and Canada.Topics: Business fluctuations and cycles; Econometric and statistical methods
Burkart and Ellingsen's (2004) model of trade credit and bank credit rationing predicts that trade credit will be used by medium-wealth and low-wealth firms to help ease bank credit rationing.Topics: Credit and credit aggregates; Financial markets
The author empirically tests two aspects of the interaction between financial variables and inventory investment: negative cash flow and finance constraints due to asymmetric information.Topics: Business fluctuations and cycles; Financial Institutions
Social learning models of investment provide an interesting explanation for sudden changes in investment behaviour.Topics: Business fluctuations and cycles