This paper analyzes the time-varying credibility of the Fed's inflation target in an empirical macro model with … asymmetric information, where the public has to learn about the actual inflation target from the Fed's interest rate policy. To … across monetary policy regimes. I find that imperfect credibility is pronounced during the Volcker Disinflation and to a …

two-way communication between the central bank and the public affects inflation dynamics. When inflation target is … hence the bank can stabilize inflation. However, when inflation target is unobservable or less credible, the public updates … their perceived inflation target and the information revealed from markets to the bank becomes less perfect. The degree of …

macroeconomic effects. This finding requires inflation expectations to adjust counterfactually large. When modeling inflation …

We use a representative online survey to investigate the inflation expectations of German consumers and the credibility … of the ECB's inflation target during the recent high inflation period. We find that credibility has trended downwards … since summer 2021, reaching an all-time low in April 2022. The high correlation between inflation expectations and the …