Sénégas, Marc-Alexandre; Vilmunen, Jouko - Suomen Pankki - 1999
credibility–flexibility tradeoff in monetary policymaking. We show that if the flexibility problem dominates, an increase in … conservatism. This happens when the central bank has a sufficiently large credibility problem. This is particularly clear in the … contain useful information about the relative size of the credibility problem and, hence, about how incipient uncertainty can …
