-)establish credibility, optimal monetary policy under discretion is shown to set higher interest rates today if average inflation exceeded … term in the central bank's optimal instrument rule, which we refer to as the "credibility loss". Augmenting a standard … of seven central banks and that this influence is economically meaningful. A deteroriation in credibility forces central …

bank credibility. Forward guidance and the credibility of the central bank are uniquely modeled by utilizing a game …-theoretic evolutionary framework. We estimate credibility for the U.S. Federal Reserve with Bayesian methods exploiting survey data on … estimate of Federal Reserve credibility in terms of forward guidance announcements is relatively high, which indicates a degree …

bank credibility. Forward guidance and the credibility of the central bank are uniquely modeled by utilizing a game …-theoretic evolutionary framework. We estimate credibility for the U.S. Federal Reserve with Bayesian methods exploiting survey data on … estimate of Federal Reserve credibility in terms of forward guidance announcements is relatively high, which indicates a degree …