Africa over the past two decades, which coincides with the adoption of the inflation-targeting regime. The paper conjectures …, 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 …

-output process that arise from convexity in the Phillips curve and endogenous monetary policy credibility. We find that the dynamic … extended model does a much better job in accounting for the deterioration in monetary policy credibility and the output costs … of regaining monetary policy credibility once it has been lost …

A loss of solvency increases central bank vulnerability, reducing the credibility of commitments to defend a nominal …

and risks presented by the operational environment. Attaining credibility is facilitated if the public can easily …

credibility and, thus, maintaining low inflation in the long run is closely linked to anchored inflation expectations …

generate losses which undermine macroeconomic stability and call into question the credibility of their policies. In assessing …