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Consider what is happening to inflation expectations. Suggest an explanation(s) for the changes in these expectations. 12 points Quantify the behavior of inflation expectations using
Consider what is happening to inflation expectations. Suggest an explanation(s) for the changes in these expectations. 12 points Quantify the behavior of inflation expectations using the impact on 10y TIPS breakeven rates (i.e. their spread to 10y Treasuries). 2 points Comment on the impact for QE2 and QE3, using up to one line. 12 points Comment on the impact on inflation for QE1, providing up to two explanations by referring to up to two prominent schools of macroeconomic thought linking monetary policy and inflation, using up to three lines
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