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 … credible and lack transparency. If policies are imperfectly credible, then transparency helps private agents to learn the …

, will have negative effects on welfare. This paper studies the welfare effects of varying levels of transparency in a model …

This paper presents a model for Inflation Targeting under imperfect policy credibility. It modifies the conventional … model in three ways: an endogenous policy credibility process, by which monetary policy can gain or lose credibility over … time; non-linearities in the inflation equation and in the credibility generating process; and an explicit loss function …

accumulate a buffer of liquid assets, or strengthen transparency to communicate solvency. While a liquidity buffer provides … complete insurance against small shocks, transparency covers also large shocks but imperfectly. Due to leverage, an unregulated … bank may choose insufficient liquidity buffers and transparency. The regulatory response is constained: while liquidity …

Credibility is the bedrock of any crisis stress test. The use of stress tests to manage systemic risk was introduced by … certainelements of the framework have been criticized for their lack of credibility. This paper proposes a set of guidelines for …