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macroeconomic model of commitment and credibility. As the dependent variable, we calculate a post-reform inflation rate. The …
Persistent link: https://www.econbiz.de/10010270683
extent to which inflation expectations are formed by the announced targets. As the credibility of the central bank increases … target. Credibility enables expectation to be formed in a forward-looking way by weakening its connection with the past. This … study aims to contribute to the literature concerning the effects of credibility on monetary policy. For this purpose, using …
Persistent link: https://www.econbiz.de/10014558525
-)establish credibility, optimal monetary policy under discretion is shown to set higher interest rates today if average inflation exceeded … term in the central bank's optimal instrument rule, which we refer to as the credibility loss. Augmenting a standard Taylor … seven central banks and that this influence is economically meaningful. A deteroriation in credibility forces central …
Persistent link: https://www.econbiz.de/10010294449
The paper compares the credibility of currency boards and (standard) pegs. Abandoning a currency board requires a time …
Persistent link: https://www.econbiz.de/10010296385
ecological ones. Taxes solve the credibility problem a monopoly supplier of licenses would face, and lead to a suboptimal low …
Persistent link: https://www.econbiz.de/10010296969
The theory 'corporate social responsibility' (CSR) is characterized in the paper. The paper expresses the authors …
Persistent link: https://www.econbiz.de/10010322153
We examine the incentives of an interest group to provide verifiable policy-relevant information to a political decision-maker and to exert political pressure on her. We show that both lobbying instruments are interdependent. In our view information provision is a risky attempt to affect the...
Persistent link: https://www.econbiz.de/10010266260
The paper analyses credibility and reputation in the context of peace negotiations. Where war provides economic gains …
Persistent link: https://www.econbiz.de/10010279254
Two signaling games of monetary policy are considered: game one examines the effect of hysteresis on the labor market on the results of the repeated monetary policy game. Disciplinary effects of reputation disappear in presence of hysteresis. The second game compares weifare effects of monetary...
Persistent link: https://www.econbiz.de/10010397973
It is often argued that certifiers have an incentive to offer inflated certificates, although they deny it. In this paper, we study a model in which a certifier is paid by sellers, and may offer them inflated certificates, but incurs costs if doing so. We find that the certifier may face a...
Persistent link: https://www.econbiz.de/10010427598