The bulk of corporate governance theory examines the agency problems that arise from two extreme ownership structures …

In exchange rate-based stabilization programs, credibility often follows a distinct time pattern. At first it rises as … credibility of the program falls, sometimes precipitously. This paper develops a political-economy model that focuses on the … evolution of credibility over time, and is consistent with the pattern just described. Inflation inertia and costly budget …

credibility is more costly under predetermined exchange rates because the real effects are more pronounced …

-prices model. Under full credibility, a reduction in the rate of devaluation results in an immediate and permanent reduction in the …

A common rationale for EMS membership is that it enhances the credibility of a central bank’s commitment to stable … exchange rate bands and the prevalence of capital controls. In our model, capital controls themselves affect credibility … to reconcile the non-zero width of the bands with the credibility-based interpretation of the EMS …

credibility and the speed of private sector learning, which are shown to have a major impact on the speed of inflation adjustment …