We study disinflations under imperfect credibility of the central bank. Imperfect credibility is modeled as the extent … to which agents rely on adaptive learning to form expectations. Lower credibility increases the mean, variance, and … skewness of the distribution of sacrifice ratios. When credibility is low, disinflationary policies become very costly for …

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

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