learning. Credibility is measured by accuracy of this forecasting method relative to simple statistical forecasts. Credibility … evolves through reinforcement learning. Initial credibility and initial level of target price are key factors influencing …

This paper studies the credibility of the currency peg of Cape Verde (CV) by assessing the impact of economic … either a larger risk premium or favourable exchange rate movements. We take this to be a sign of the credibility of the peg …, which apparently reflects the intertemporal credibility of CV's economic policy and so has successfully withstood …

credibility EBRS is associated with overheating and current account deficits, IRRs give rise to somewhat opposite results … costs infringed by imperfect credibility …

This paper examines the costs of disinflation and the role of credibility in a model where pricing rules are optimal … between optimal pricing rules and credibility is essential in the determination of the costs of disinflation. A continued … be successful even when credibility is absent, provided that it is preceded by a mechanism of price alignment. We also …

Central banks that lack credibility often tie their exchange rate to that of a more credible partner in order to … “import” credibility. We show in a small open economy model that a central bank that displays “limited credibility” can … credibility will peg their currency to that of a more credible partner. As the central bank's credibility improves it will place …