to remedy the problems; and draws some general conclusions. The two main current problems are the lack of credibility of … the target and the significant risk that the target will be missed. The reasons for the lack of credibility include the …

absolute credibility and credibility in expectation, are distinguished. The inflation targets of Canada, New Zealand and Sweden …A simple test of inflation target credibility is constructed by subtracting the maximum and minimum inflation rates …, fall outside the range of target- consistent real yields, credibility is rejected. Two concepts of credibility, called …

s were mainly due to imperfect credibility, evident in volatility and stubbornness of long-term interest rates. Studying …'s credibility. We also consider the interplay of monetary targets, operating procedures, and credibility during the Volcker …