We revisit the question of what determines the credibility of macroeconomic policies here, of promises to repay public … probability, much conventional wisdom on the determinantes of credibility need no longer hold. For instance, appointing a … conservative policymaker or denominating public debt in foreign currency may reduce, not increase, credibility …

incentive constraints on the policy making process, such as lack of credibility, political opportunism, political ideology, and …: it covers credibility issues, political business cycles, and optimal design of monetary institutions. Part II deals with … fiscal policy in a dynamic general equilibrium set up: the main topics here are credibility of tax policy, and political …

credibility, because of time-inconsistency of the optimal policy under commitment, and (iii) coordination failure, because a …

price stability. The benefits of credibility (private inflation expectations coinciding with the inflation target) are … discussed. Credibility improves the tradeoff between inflation variability, output-gap variability and instrument variability …

restrictions on expectations that allow the monetary authority to build credibility for a disinflationary policy by demonstrating …

Central bank credibility plays a pivotal role in much of the modern literature on monetary policy, yet it is difficult … important issues: why credibility matters, and how credibility can be built. The central bankers' answers are compared with the …

evolving Fed credibility, which accords with our recent work using a quantitative New Keynesian model. We define credibility as …, no conflict arises between flexible inflation targeting and maintaining/accumulating credibility. Second, implicit …

more-stringent robustness tests eventually fail could increase the credibility of policy evaluations …