Rigobón, Roberto (contributor) - 2007
. In other words, how
1
credible the target (of in�ation) is to shocks to the nominal exchange rate. Second, this can
be … evaluated by observing how �rms set prices in response to exchange rate movements and
in anticipation to future in … percent credible if in
the presence of a transitory exchange rate shock, the target is una�ected - and therefore the
central …