evolving Fed credibility, which accords with our recent work using a quantitative New Keynesian model. We define credibility as …, no conflict arises between flexible inflation targeting and maintaining/accumulating credibility. Second, implicit … targeting reduces the effectiveness of expectations management and stabilization policy, as well as opening the door to costly …

before 1981 and by optimal policy with commitment afterward. In theory and quantification, the interaction of private sector …

understand the policymaker's incentives and form their expectations accordingly. Because the policymaker has the power to create …

This paper is a selective survey of new or recent methods to extract information about market expectations from asset …

expectations, macroeconomic dynamics, and the efficient formulation of monetary policy. Economic agents rely on an adaptive … learning technology to form expectations and to update continuously their beliefs regarding the dynamic structure of the … between monetary policy and economic outcomes. We find that policies that would be efficient under rational expectations can …

This paper studies how competition affects firms' expectations in a new dynamic general equilibrium model with rational …

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

This paper studies the implications of central bank credibility for long-run inflation and inflation dynamics. We …