Modern monetary policy focuses on credibility and shaping consumers' inflation expectations. According to the concept …-making process and may be a specific intermediate target. The aim of the study is to analyse the credibility of inflation forecasts … credibility index. The inflation forecasts' credibility index may be calculated for all types of inflation forecasts made by …

A crucial but often ignored element of inflation expectations is the amount of perceived inflation risk. This paper …) using a new methodology. The main conclusion from our analysis is that, when monitoring inflation expectations, limitin … attetention to a point prediction is not sufficient. The analysis of inflation expectations should take into account inflation …

We propose a novel framework to gauge the credibility of central banks' commitment to an inflation-targeting regime … inflation targeting makes economic agents change their perception about central bank decisions. Specifically, using the Reserve … Bank of India's adoption of inflation targeting in 2015 as a laboratory, we apply two different approaches to estimate a …

incorrectly attribute the temporary reductions in the inflation rate to improvements in credibility. Utilizing a time varying …Central bank credibility is critical for the effectiveness of monetary policy. The measures of credibility that are … based on the changes in actual inflation rate do not perform very well in environments of chronic inflation. We design an …