Price-level targeting (PLT) is optimal under the fully-informed rational expectations (FIRE) benchmark but lacks … experiment - where expectations are elicited from human subjects - to collect data on expectations, inflation and output dynamics … emulate the subjects' expectations with a micro-founded heterogeneous-expectation New Keynesian (HENK) model and reproduce the …

We propose a novel framework to gauge the credibility of central banks' commitment to an inflation-targeting regime …

Modern monetary policy focuses on credibility and shaping consumers' inflation expectations. According to the concept …-making process and may be a specific intermediate target. The aim of the study is to analyse the credibility of inflation forecasts … credibility index. The inflation forecasts' credibility index may be calculated for all types of inflation forecasts made by …