In this paper, we analyze how lack of credibility and transparency of monetary and fiscal policies undermines the …-country evidence that monetary policy transparency and fiscal credibility reduce the incidence of export price volatility on output …

credibility. In our setting, central bank credibility is proportional to the deviation of inflation expectations from the … announced inflation target, with positive deviations being more costly compared to negative ones. A loss in policy credibility …. We find that the extended model with credibility effects matches well the key macroeconomic data over specific past …

, in line with the literature, that this outcome is largely due to improved monetary policy credibility. To do this, it … first documents the factors that explain monetary policy credibility. Using the standard deviation of individual inflation … forecasts as a measure of monetary policy credibility, its shows that the latter is negatively affected by the level of …

”, albeit of limited size. The value of such services depends on the credibility of the central bank, which can be accumulated …

been based on discretionary targeting of broad money without any clear target to anchor inflation expectations. This paper …