Euro area (Germany, France, Italy and Spain), the UK and the USA. The result are very different for the countries … their favour and the Central Bank fighting against inflation. Since the wage and price setters did not fully believe in an … raises the inflation rate significantly above the target inflation rate of the Central Bank. In that case a "break" in the …

This paper examines the historical evolution of central bank credibility using both historical narrative and empirics … financial stability relying on macro prudential regulation may pose significant challenges for central bank credibility …