Policy implications are derived for an inflation-targeting central bank, whose credibility is endogenous and depends on … occur, depending on the credibility of the central bank. Deflationary spirals can be prevented with a high inflation target …

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 …

credibility) but the degree of anchoring to this target has gone down, implying an erosion of what we call anchoring credibility …. A decline in anchoring credibility can explain increased forecast variance independently of any changes in inflation …

were exported to other countries. This breakdown in cooperation resulted in the standard's loss of credibility, causing …

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