An increase in the inflation expectation rate leads to higher interest rates. However, the actual increase in interest rates is lower than the inflation expectation rate. This is usually true until the actual or expected)rate of inflation has not reached a certain level. – See consensus economics, survey of professional forecasters, monetary policy, forward-looking, inflation, perceived, inflation targeting, inflation buyers, price adjustments, real interest rate argument, swap, inflation-indexed, Theilian disequilibrium coefficient. – Cf. Monthly Report of the Deutsche Bundesbank of October 2006, pp. 15 et seq. (problems in measuring inflation expectations).
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