, 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 …

This paper analyzes the role of transparency and credibility in accounting for the widely divergent macroeconomic … parameters. For a policy regime with relatively high credibility, our analysis highlights the benefits of a gradualist approach … relatively low credibility (such as the Federal Reserve in late 1980), an aggressive policy stance can play an important …

, 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 …

inadequate policy tools and theory from the interwar period, set the stage for the Great Inflation of the 1970s. The lessons from …