A simple test of inflation target credibility is constructed by subtracting the maximum and minimum inflation rates …, fall outside the range of target-consistent real yields, credibility is rejected. Two concepts of credibility, called … absolute credibility and credibility in expectation, are distinguished. The credibility of inflation targets of Canada, New …

private agents to be successful--and much of this communication is channeled through the media. This is especially true for … central banks because the effectiveness of monetary policy depends to a large degree on their credibility among the general … decisions are reported upon in the print media. We find that media coverage is, among other things, influenced by the amount of …

announcing a quantified inflation objective, other forms of communication, or by publishing central banks’ inflation and output …