This paper studies the effectiveness of forward guidance when central banks have imperfect credibility. Exploiting … expectations. In our model, the key parameter that aggregates heterogeneous expectations captures the central bank's credibility …, and other major advanced economies have similar levels of credibility (albeit far from full credibility); however, Japan …

In this paper we analyze the operation of the inter-war gold exchange standard to see if the evident credibility of the …

lack verifiability, needed for credibility. Central banks announce intermediate targets such as exchange rates, so that the …

may eliminate distortions induced by the lack of credibility of monetary policy. Second, dollarization may weaken …

price stability. The benefits of credibility (private inflation expectations coinciding with the inflation target) are … discussed. Credibility improves the tradeoff between inflation variability, output-gap variability and instrument variability …

restrictions on expectations that allow the monetary authority to build credibility for a disinflationary policy by demonstrating …

Central bank credibility plays a pivotal role in much of the modern literature on monetary policy, yet it is difficult … important issues: why credibility matters, and how credibility can be built. The central bankers' answers are compared with the …