distortion, e.g., underutilization of capacity and real exchange rate misalignment. However, while under imperfect credibility … by imperfect credibility …

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 …

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 …

This paper presents a theory of the real effects of disinflation. As in New Keynesian models, price adjustment is … staggered across firms, As in New Classical models, credibility is imperfect: the monetary authority may not complete a promised … disinflation. The combination of imperfect credibility and staggering yields more plausible results than either of these …

outside these rate-of-return bands can be used as a simple test of exchange rate credibility, under the assumption of …