ecological ones. Taxes solve the credibility problem a monopoly supplier of licenses would face, and lead to a suboptimal low …

inflation and policy credibility. Second, out of these two ‘commitment technologies,’ EIT is shown to be socially superior to …

the efficacy, margins, and hence, the credibility of monetary policy. Experience shows that under such environment …. This is partly because recurrent past policy failures have yielded very low credibility on current and future policies … volatility and crisis probability. The uncertainty and low credibility of policies have shown a tendency to mutually reinforce by …