Monetary Policy Credibility and Coordination

1988 ◽  
pp. 151-171
Author(s):  
Kevin Clinton ◽  
Jean-Claude Chouraqui
Keyword(s):  
Monetary Policy ◽  
Policy Credibility

scholarly journals Currency Boards, Dollarized Liabilities, and Monetary Policy Credibility

2003 ◽  
pp. 1.000-34.000
Author(s):  
Diego Valderrama ◽  
◽  
Mark M. Spiegel ◽  
Keyword(s):  
Monetary Policy ◽  
Currency Boards ◽  
Policy Credibility

Can reputation resolve the monetary policy credibility problem?

1994 ◽  
Vol 33 (2) ◽  
pp. 355-380 ◽  
Author(s):  
Ali al-Nowaihi ◽  
Paul Levine
Keyword(s):  
Monetary Policy ◽  
Policy Credibility ◽  
Credibility Problem

scholarly journals Monetary Policy Credibility and Exchange Rate Pass-Through

2016 ◽  
Author(s):  
Yan Carriere-Swallow ◽  
Bertrand Gruss ◽  
Nicolas E. Magud ◽  
Fabian V. Valencia
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Policy Credibility ◽  
Pass Through ◽  
Exchange Rate Pass Through

scholarly journals The Monetary Policy Credibility Channel and the Amplification Effects in a Semi-structural Model

2020 ◽  
Vol 20 (201) ◽  
Author(s):  
Thitipat Chansriniyom ◽  
Natan Epstein ◽  
Valeriu Nalban
Keyword(s):  
Monetary Policy ◽  
Structural Model ◽  
Inflation Expectations ◽  
Extended Model ◽  
Inflation Target ◽  
Asymmetric Effects ◽  
Policy Frameworks ◽  
Integrated Policy ◽  
Policy Credibility ◽  
Central Bank Credibility

The paper extends a standard semi-structural model to account for nonlinear and asymmetric effects of monetary policy credibility. In our setting, central bank credibility is proportional to the deviation of inflation expectations from the announced inflation target, with positive deviations being more costly compared to negative ones. A loss in policy credibility as a result of shocks leads to a more persistent, backward-looking inflation process, and is associated with lower output. We find that the extended model with credibility effects matches well the key macroeconomic data over specific past episodes for Indonesia and Philippines and consider its adaptation to integrated policy frameworks as an area for further exploration.

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