We define and study transparency, credibility, and reputation in a model where the central bank's characteristics are … unobservable to the private sector and are inferred from the policy outcome. A low-credibility bank optimally conducts a more … inflationary policy than a high-credibility bank, in the sense that it induces higher inflation, but a less expansionary policy in …

credibility EBRS is associated with overheating and current account deficits, IRRs give rise to somewhat opposite results … costs infringed by imperfect credibility …

credibility of the central bank. In contrast, conducting monetary policy with a flexible inflation target rule is likely to …

governors suffer from a generic credibility problem. Federal Reserve chairman appointments stand out in terms of their unusually …

to lie much less in the credibility of the policymakers than in the behavior of wage-earners. Differences between the …