For the industrialized economies, our evidence indicates that IT has played a significant role in anchoring long-run inflation expectations. For the United States and the euro area, private-sector inflation forecasts (at horizons up to ten years) exhibit a
highly significant correlation with a three-year moving average of lag inflation In contrast, at the longest horizons this correlation is largely absent for the five IT countries, indicating that these countries’ central banks have been quite successful in de link expectations from realized inflation