This paper analyzes the time-varying credibility of the Fed's inflation target in an empirical macro model with … across monetary policy regimes. I find that imperfect credibility is pronounced during the Volcker Disinflation and to a …

-)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 …

. Second, the monetary policy response on the financial and sovereign debt crisis might trigger a decline in credibility, and …

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

investigates the driving factors of disagreement, paying special attention to the influence of monetary authorities' credibility …' credibility; this relationship is positive in the case of the growth rate of industrial production. …

does not satisfactorily examine key fiscal and monetary policy practices that arguably affect policymaking credibility … addenda, the results generally suggest that credibility proxies are largely sensitive to research design. However, some data …