Central Bank Signaling and Inflation

Analyze the role of central bank communication and policy-path signaling in shaping long-term inflation expectations, financial stability, and credible policy sequencing in a mature economy. Compare various signaling strategies, assess risks of over-tightening or under-communicating, and design a framework for maintaining credibility while preserving flexibility across cycles. Consider how households, firms, and financial markets adapt to anticipated policy paths and how this informs macroeconomic forecasting and instrument design.