credibility-flexibility tradeoff in monetary policymaking. We show that if the flexibility problem dominates, an increase in … conservatism. This happens when the central bank has a sufficiently large credibility problem. This is particularly clear in the … contain useful information about the relative size of the credibility problem and, hence, about how incipient uncertainty can …

policymakers. However, recent evidence has emerged showing that industry-backed groups often attempt to undermine the credibility …

, but only if credibility is high enough. Supervisors with little credibility cannot prevent systemic runs by misreporting … implications for institutional design: ex-ante, a social planner would choose an interior level of credibility …

. Cases in which policy credibility is ignored or treated as exogenous are distinguished from cases in which credibility and … that endogenous policy credibility strengthens the case for forward-looking inflation forecast based rules relative to …