countries. The credibility associated with exchange rate-based stabilization plans appears to exhibit a distinctive dynamic … pattern. Credibility rises in the early stages of these programs as the exchange rate anchor brings about price stability with … the late stages of such programs--which often fail--credibility seems to fall precipitously, as the question becomes not …

In exchange rate-based stabilization programs, credibility often follows a distinct time pattern. At first it rises as … credibility of the program falls, sometimes precipitously. This paper develops a political-economy model that focuses on the … evolution of credibility over time and is consistent with the pattern just described. Inflation inertia and costly budget …

In exchange rate-based stabilization programs, credibility often follows a distinct time pattern. At first it rises as … credibility of the program falls, sometimes precipitously. This paper develops a political-economy model that focuses on the … evolution of credibility over time, and is consistent with the pattern just described. Inflation inertia and costly budget …