Chansriniyom, Thitipat; Epstein, Natan; Nalban, Valeriu - 2020
announced inflation target, with positive deviations being more costly compared to negative ones. A loss in policy credibility …The paper extends a standard semi-structural model to account for nonlinear and asymmetric effects of monetary policy … credibility. In our setting, central bank credibility is proportional to the deviation of inflation expectations from the …