Evidence on the credibility of a central bank's inflation target typically refers to the anchoring of survey …-based measures of inflation expectations. However, both the survey question and the anchoring criteria are only loosely connected to …-varying credibility of the inflation target. Our results indicate that credibility has significantly decreased in our sample period …

interbank market. The novel feature of the model is that the expectations of the interbank market outcomes determine the …

This paper shows that the credibility gain from permanently committing to a fixed exchange rate by joining the European … credibility a pegged exchange rate regime yields a lower loss compared to an inflation targeting policy, even if this policy … ranking would be reversed in a full-credibility environment. There exists an initial stock of credibility that must be …

credibility of stabilization policy. The backward-looking case is such that the simple-rule parameters can be the solution of …