, information transmission through changes in the interest rate creates a distortion, thus, lending an amount of credibility. This …

We define and study transparency, credibility, and reputation in a model where the central bank's characteristics are … unobservable to the private sector and are inferred from the policy outcome. A low-credibility bank optimally conducts a more … expansionary policy than a high-credibility bank, in the sense that it induces higher inflation, but a less expansionary policy in …

bankers to undertake larger interest rate steps (ceteris paribus). -- Inflation expectations ; credibility ; reaction function … stylized New Keynesian model in which agents' inflation expectations are sensitive to inflation deviations from target. To (re …-)establish credibility, optimal monetary policy under discretion is shown to set higher interest rates today if average inflation exceeded …

potentially faster-expectations convergence than with a fixed target. The randomized target achieves faster convergence in …; asymmetric information; Bayesian rational expectations; commitment …

stabilize the economy through expectations. The endogenous nature of credibility also brings novel results relative to models … central bank with such discretion undermines the credibility of the price-level target and weakens its effectiveness to … with exogenous timing of target resets. A much higher degree of credibility is needed to realize the stabilization benefits …

. Together, these factors have helped anchor inflation expectations around a credible target. This anchoring has in turn made it … well-anchored inflation expectations leave monetary policy with greater flexibility to consider its impacts on output and …

circumstances and contingencies. In this broader sense, longer-term predictability is also closely related to the credibility of the …

Modern monetary policy focuses on credibility and shaping consumers' inflation expectations. According to the concept …-making process and may be a specific intermediate target. The aim of the study is to analyse the credibility of inflation forecasts … credibility index. The inflation forecasts' credibility index may be calculated for all types of inflation forecasts made by …