Kostyshyna, Olena; Özden, Tolga; Zhang, Yang - 2024 - Last updated: May 14, 2024
Elevated inflation can threaten the credibility of central banks and increase the risk that inflation expectations do …-varying propagation of inflationary shocks that improves forecasting performance of inflation and wage growth. Central bank credibility is … endogenous in our model and depends on several notions of the learning mechanism. Weaker credibility and a higher risk of …
