This paper examines the historical evolution of central bank credibility using both historical narrative and empirics … for a group of 16 countries, both advanced and emerging. It shows how the evolution of credibility has gone through a … pendulum where credibility was high under the classical gold standard before 1914 before being lost and not fully regained …

, and to the transparency and credibility of the monetary authorities. We attempt to account for the salient features of … argument for gradualism under a transparent monetary regime becomes less persuasive if the monetary authority lacks credibility …