This paper studies the reliability of financial reporting when the credibility of the manager, represented by his … misreporting propensity, is unknown. We show that credibility concerns affect the time-series of reported earnings, book values …, and stock prices in ways that seem consistent with empirical evidence. When investors are uncertain about the credibility …

, such as the ERM, this policy was not undermined by credibility problems. The episode provides an ideal testing ground for …

effect of monetary policy? We consider a version of the Barro–Gordon credibility problem in which monetary policy signals an …