%0 Journal Article %T Forward-looking component in consumers¡¯ expectations and inflation forecast targeting: the case of six European economies %A Rutkowska %A Aleksandra %A Szyszko %A Magdalena %J - %D 2019 %R 10.18045/zbefri.2019.1.77 %X Sa£¿etak Since there are different ways of revealing central banks¡¯ intentions, a simple research question, which we address in this study, arises. Is the forward-looking (FL) component of consumers¡¯ expectations related to the way in which the forecast is revealed and used by central banks? The research covers six countries: The Czech Republic, Hungary, Romania, Poland, Sweden, and the UK, over the period of 2001-2016. Our methodology consists of the quantification of expectations, tests for rationality of expectations, estimation of the degree of their FL, the index-based assessment of central banks¡¯ forecasting transparency and importance of forecasts in monetary policy, as well as correlation examination of forward-lookingness of monetary policy and expectation errors. Based on the completed research, we link the results of the FL analysis to the index-based assessment of inflation forecasts targeting. The results are varied. The highest degree of expectations¡¯ FL is found for the UK and Sweden. Czech consumers¡¯ expectations are less FL, whereas central banks¡¯ involvement in inflation forecast targeting is comparable to the Swedish case. For two countries we found no forward-looking component in consumers¡¯ expectations. The study makes a valid contribution to the existing literature as it presents a novel approach to analysing the relation between forecasts and inflation forecast targeting and expectations %K inflation forecast %K inflation forecast targeting %K consumers¡¯ expectations %K forward-lookingness of expectations %U https://hrcak.srce.hr/index.php?show=clanak&id_clanak_jezik=323605