per se even in today's world of highly mobile capital. The paper highlights that the 1992/93 crisis of the EMS' Exchange … countries. Based on an assessment of credibility of the EMS before and during the crisis, the paper discusses distinct features … that add to the credibility of regional exchange rate systems. It reasons that a system that is built around well …

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 …

of f iscal policy? In this paper, we develop indicators of f iscal credibility that quantify the degree to which policy … good policy track record, contribute to magnifying this effect, thereby improving fiscal credibility. Conversely, empirical … analysis suggests that markets reward credibility with more favorable sovereign financing conditions …