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The perceptions of a central bank’s inflation aversion may reflect institutional structure or, more dynamically, the history of its policy decisions. In this paper, we present a novel empirical framework that uses high frequency data to test for persistent variation in market perceptions of...
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The credibility of a central bank’s anti-inflation stance, a key determinant of its success, may reflect institutional … natural experiment for considering whether, and how, central bank credibility evolves. In this paper, we present a model …
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related to the credibility of the monetary regime in place, something we measure by the persistence of inflation …
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