arbiter
JournalsAccount

Nonlinearities With Deanchored Inflation Expectations

Stefano Fasani et al.

International Economic Review2026https://doi.org/10.1111/iere.70063article
AJG 4ABDC A*
Weight
0.50

Abstract

Using a nonlinear VAR, we examine the asymmetric effects of shocks to long‐run inflation expectations. Negative shocks, which temporarily lower long‐run inflation expectations, have a stronger and more persistent impact on output, investment, and firm entry compared to positive shocks. We provide a novel theoretical explanation, demonstrating how these shocks influence the second‐order components of the model, shaping firms' “wait‐and‐see” behavior—particularly along both the intensive and extensive margins of the investment channel.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1111/iere.70063

Or copy a formatted citation

@article{stefano2026,
  title        = {{Nonlinearities With Deanchored Inflation Expectations}},
  author       = {Stefano Fasani et al.},
  journal      = {International Economic Review},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/iere.70063},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Nonlinearities With Deanchored Inflation Expectations

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.