binding policy commitment before nominal wages are set, excessive inflation may result due to a credibility problem. This is … the famous Kydland&Prescott - Barro&Gordon inflationary bias result. This paper shows that a similar credibility problem … solve the credibility problem. …

small spending by special interests. -- lobbying ; voting ; special interests ; credibility …

binding policy commitment before nominal wages are set, excessive inflation may result due to a credibility problem. This is … the famous Kydland & Prescott-Barro & Gordon inflationary bias result. This paper shows that a similar credibility problem … may solve the credibility problem …

. Politicians can overcome their credibility deficit in two ways. First, they can build reputations by undertaking costly actions … credibility in this way, we find that targeted transfers and corruption are higher and public good provision lower than in … political credibility, political reliance on patrons enhances welfare in the short-run, in contrast to the traditional view that …

We reexamine the common argument that rules produce greater credibility than discretion. Rules limit the actions of … everlasting, a regime of discretion in some periods may produce superior credibility and dominate a regime of rules. Keyword …(s): Rules, Discretion, Credibility, Regulation …

effect on the credibility of exchange rate pegs. Conversely, Keefer and Stasavage argue that central bank independence does …