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We look at the exchange rate policy choices and outcomes for small rich economies. Small rich economies face significant policy challenges due to proportionately greater economic volatility than larger economies. These economies usually choose some form of fixed exchange rate regime,...
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another factor that analysts have largely ignored: credibility. In the real world governments find it difficult to craft and …-world modelling exercises. As credibility declines the cost of coordinated international regulation skyrockets—even in developing … treaties are usually weak, governments must rely on their own actions to boost regulatory credibility—for example, governments …
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Just prior to the Copenhagen climate summit, China pledged to cut its carbon intensity by 40-45% by 2020 relative to its 2005 levels to help to reach an international climate change agreement at Copenhagen or beyond. This raises the issue of whether such a pledge is ambitious or just represents...
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success of this regime may depend critically on the credibility of the target and the expectation that the authorities will … anchoring of expectations is interpreted as a gain in credibility. Also considered are the effects on the credibility of the … anchored over the whole sample period, credibility has risen, but at the same time the cost of breaching the target has grown. …
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is seen as a set of conventional signs that point to types, and the credibility of a message depends on the strategic …
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promises, and explores the distributional consequences of this decision, in a setting where party credibility can vary. When … campaign promises. When political credibility is sufficiently low, some voter groups are targeted only with vote buying and not …
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