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 …

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 …

This paper examines some recent techniques designed to draw inferences about the credibility of changes in … components of a "credibility variable" is proposed. The methodology is then used to test for the existence of a credibility …

's expectations reflect this possibility. In the paper, credibility is assumed to depend on the probability that the authorities will … leading to price stability are presented. Its credibility varies over time, depending on the paths for output and inflation …

, 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 …