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In this paper we assess the credibility of Bank of Spain’s monetary and interest rate announcements as perceived by the … aggregate and the market interest rates. Secondly, we estimate an index of credibility that recognizes the presence of regime … the marginal credibility increased in the sample period for most of the interest rates studied. Classification-JEL : C22 …
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This paper tries to precisely date the change of monetary policy regimeoccurred in Spain along the year 1984 moving away from controlling monetaryaggregates into interest rate targeting. The most likely date for the changeis estimated and, surprisingly, there is evidence that agents learn...
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Fiscal rules enhance the credibility of economic policy, allow countercyclical and sustainable fiscal policies, and …
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