paper, we examine how credibility affects the outcome of a disinflation in a model with endogenous time-dependent pricing … play an important role in explaining the effects of imperfect credibility. We initially consider the costs of disinflation … when the degree of credibility is fixed, and then allow agents to use Bayes’ rule to update beliefs about the “type” of …

credibility. We initially consider a setup where the degree of credibility is fixed and then allow agents to update beliefs about … and imperfect credibility increases the output costs of disinflation …

This paper examines the concept of inflation persistence in macroeconomic theory. It begins with a definition of …