Melecky, Martin; Rodrıguez Palenzuela, Diego; … - Volkswirtschaftliche Fakultät, … - 2008
We quantify the effects of monetary policy transparency and credibility on macroeconomic volatility in an estimated … agents overestimate the volatility of the inflation target, the overall gains of announcing the target can be substantial. We … central bank’s monetary policy rule and persistent shifts in the inflation target, and therefore use optimal filtering …