inflation, how well they might be anchored in the long run, and at what level. This methodology allows us then to identify a … for credibility. We apply this methodology to the US history of inflation since 1963 and examine how well our measure … inflation scares. …

We identify credible monetary policy with first, a disconnect between inflation and inflation expectations and second …, the anchoring of the latter at the inflation target announced by the monetary authorities. We test empirically whether … this is the case for a number of countries that have an explicit inflation target and therefore include the Euro Area. We …