Continuos credibility effects are incorporated into a simple model of optimal monetary policy. The resulting model … provides explanations for a number of "folk theorems" about credibility in monetary policy. A central bank with low initial … credibility pursues a more restrictive policy than a central bank with high initial credibility. It accommodates shocks less and …

judgments. We find that source credibility moderates the effect of correction on confidence: correction decreases confidence … when a product recommendation comes from a high credibility source but increases confidence when the same message comes … from a low credibility source. As a result, correction increases the effectiveness of recommendations from low credibility …

(individual rating), the credibility of a good rating in an inflationary equilibrium of the signaling game is limited by the … average level of credibility for its good ratings than in individual rating. In decentralized rating, the ratings are again … degree of rating inflation and hence a greater level of credibility than in individual rating. Comparing centralized rating …

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 …