countries (CEECs) can potentially enhance the credibility of their governments' policies through institutional integration with … the EU. The paper discusses the credibility problems faced by the CEECs and shows how EU membership will enhance the … institutional setting and the governments' credibility. Based on regression results between an indicator of institutional change and …

degrees of credibility, in which commitment and discretion become special cases of what we call quasi commitment. The monetary … measure of the (lack of) credibility of the monetary policy authority, we investigate the welfare effect of a marginal … increase in credibility. Our main finding is that, in a simple model of the monetary transmission mechanism, most of the gains …

; Incentive Compatibility ; Credibility …

binding policy commitment before nominal wages are set, excessive inflation may result due to a credibility problem. This is … the famous Kydland&Prescott - Barro&Gordon inflationary bias result. This paper shows that a similar credibility problem … solve the credibility problem. …

presented under rational expectations and full credibility. In contrast, we assume agents use econometric models to form … inflation expectations, capturing limited credibility. In particular, we emphasize the exchange rate's role in shaping medium …

expectations in the price and wage setting process and on the credibility of monetary policy in the expectation formation process …