central bank with such discretion undermines the credibility of the price-level target and weakens its effectiveness to … stabilize the economy through expectations. The endogenous nature of credibility also brings novel results relative to models … with exogenous timing of target resets. A much higher degree of credibility is needed to realize the stabilization benefits …

credibility. Vestin (2006) shows that when the monetary authority cannot commit to future policy, price-level targeting yields … higher welfare than inflation targeting. We revisit this issue by introducing imperfect credibility, which is modeled as …

credibility. Vestin (2006) shows that when the monetary authority cannot commit to future policy, price-level targeting yields … higher welfare than inflation targeting. We revisit this issue by introducing imperfect credibility, which is modeled as … targeting are small. A welfare loss occurs, if imperfect credibility is highly persistent. …

The effectiveness of forward guidance depends on the credibility of the central bank. This paper sheds light on the … credibility can boost consumption in recessions close to the degree of that provided by a commitment central bank …

incorporate information about future interest rate announcements: “inattention”, “credibility”, “finite planning horizon”, and …

incorporate information about future interest rate announcements: "inattention", "credibility", "finite planning horizon", and …