deficit with seigniorage revenue. After the stabilization the government budget is balanced and the central bank engages in a … program of subsidized lending to the private sector. Stabilization is achieved by targeting a low inflation rate path through … adjustments in the quantity of central bank lending. I show that under this stabilization policy (1) the dynamic equilibrium path …

flexibility and credibility; similarly, New Zealand's improved inflation performance was achieved without a discernable increase …

We use three different indicators based on inflation expectations to measure central bank credibility in 9 countries in … Central and Eastern Europe. We quantify credibility using differences between official inflation targets and inflation …. Determinants of central bank credibility are investigated using pooled OLS. According to our results, stable and low inflation and …