inflation inertia can emerge: the interaction between lack of credibility of government monetary policy announcements and the …. Lack of credibility is then shown to lead to output losses during a disinflation program. We demonstrate the effects of … during disinflation programs with and without price controls and the influence of credibility problems. We discuss nominal …

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

more foreign-currency debt. We propose that monetary policy credibility explains the currency composition of sovereign debt … and nominal bond risks in the presence of risk-averse investors. In our model, low credibility governments inflate during … inflation, investors require risk premia on nominal debt, making nominal debt issuance costly for low credibility governments …

A new measure of credibility is constructed as a function of the differential between observed inflation and some … estimate of the inflation rate that the central bank targets. The target is assumed to be met flexibly. Credibility is … credibility and central banks with strong institutional feaures tend to do better when hit by a shock of the magnitude of the 2007 …

credibility. We analyze whether market responses to unexpected earnings releases increase following the introduction of the Public … Company Accounting Oversight Board (PCAOB), as predicted by theory if the new regime enhances reporting credibility. To … the credibility of financial reporting …

decrease child mortality in sub-Saharan Africa. There is, however, widespread concern that poor governance and in particular …

In this paper we provide empirical measures of central bank credibility and augment these with historical narratives … their role in influencing the credibility of the monetary authority. We focus on measures of inflation expectations, the … credibility is particularly vulnerable during financial crises, whether its evolution is a function of the type of crisis or its …