scholarly journals Central Bank Credibility and the Persistence of Inflation and Inflation Expectations

2012 ◽  
Vol 2012 (117) ◽  
Author(s):  
J. Scott Davis ◽  
Keyword(s):  
Central Bank ◽  
Inflation Expectations ◽  
Central Bank Credibility

scholarly journals Central Bank Credibility: Determinants and Measurement. A Cross-Country Study

2016 ◽  
Vol 66 (1) ◽  
pp. 125-151
Author(s):  
Joanna Mackiewicz-Łyziak
Keyword(s):  
Czech Republic ◽  
Central Bank ◽  
Credibility Measure ◽  
Inflation Expectations ◽  
The Czech Republic ◽  
Economic Agents ◽  
Country Study ◽  
Cross Country ◽  
Credibility Index ◽  
Central Bank Credibility

This paper proposes a new measure of central bank credibility — the credibility index calculated on the basis of the key determinants of central bank credibility. The index is compiled for 9 countries: the Czech Republic, Hungary, Slovakia, Poland, Chile, Brazil, Turkey, United Kingdom and Sweden , for the years 1999–2007. The results are cross-checked with other credibility measures based on inflation expectations of two groups of economic agents. The analysis demonstrates that the credibility index may be considered a relevant and consistent credibility measure.

scholarly journals Inflation expectations, central bank credibility and the global financial crisis

2014 ◽  
Vol 150 (2) ◽  
pp. 55-87 ◽  
Author(s):  
Petra Gerlach-Kristen ◽  
Richhild Moessner
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Global Financial Crisis ◽  
Inflation Expectations ◽  
The Global Financial Crisis ◽  
Central Bank Credibility

Deflation Risk in the Euro Area and Central Bank Credibility

2016 ◽  
Author(s):  
Gabriele Galati ◽  
Zion Gorgi ◽  
Chen Zhou
Keyword(s):  
Central Bank ◽  
Euro Area ◽  
Central Bank Credibility

Forward Guidance and the Role of Central Bank Credibility under Heterogeneous Beliefs

2018 ◽  
Author(s):  
Gavin Goy ◽  
Cars H. Hommes ◽  
Kostas Mavromatis
Keyword(s):  
Central Bank ◽  
Heterogeneous Beliefs ◽  
Forward Guidance ◽  
Central Bank Credibility

scholarly journals Can inflation forecast and monetary policy path be really useful? The case of the Czech Republic

Equilibrium ◽  
2015 ◽  
Vol 10 (3) ◽  
pp. 9 ◽  
Author(s):  
Magdalena Szyszko ◽  
Karolina Tura
Keyword(s):  
Decision Making ◽  
Monetary Policy ◽  
Qualitative Analysis ◽  
Central Bank ◽  
Quantitative Methods ◽  
Inflation Expectations ◽  
The Czech Republic ◽  
Inflation Forecasts ◽  
National Bank ◽  
Parametric Statistics

Producing and revealing inflation forecast is believed to be the best way of implementing a forward-looking monetary policy. The article focuses on inflation forecast targeting (IFT) at the Czech National Bank (CNB) in terms of its efficiency in shaping consumers’ inflation expectations. The goal of the study is to verify the accuracy of the inflation forecasts, and their influence on inflation expectations. The research is divided into four stages. At the first stage, central bank credibility is examined. At the second stage – accuracy of the inflation forecasts. The next step of the research covers a qualitative analysis of IFT implementation. Finally, the existence of the interdependences of inflation forecast, optimal policy paths and inflation expectations is analyzed. Credibility of the central bank, accuracy of the forecast and decision-making procedures focused on the forecast are the premises for the existence of relationship between forecasts and expectations. The research covers the period from July 2002 – till the end of 2013. Its methodology includes qualitative analysis of decision-making of the CNB, quantitative methods (Kia and Patron formula, MAE forecasts errors, quantification of expectations, non-parametric statistics). The results confirm the existence of interdependences between inflation forecasts and expectations of moderate strength. The preconditions of such interdependences are partially fulfilled. The research opens the field for cross-country comparisons and for quantification of IFT implementation.

scholarly journals Efektivitas Kredibilitas Bank Sentral terhadap Inflasi bagi Produsen dan Konsumen di Indonesia

2020 ◽  
Vol 20 (2) ◽  
pp. 174-196
Author(s):  
Rakhmat Prabowo ◽  
Mohamad Ikhsan
Keyword(s):  
Central Bank ◽  
Method Of Moments ◽  
Price Index ◽  
Generalized Method Of Moments ◽  
Wholesale Price ◽  
Producer Price ◽  
Core Inflation ◽  
Wholesale Price Index ◽  
The Impact ◽  
Central Bank Credibility

This study is intended to explain the impact of central bank credibility on inflation in Indonesia at the producer and consumer level. In this study, Central Bank Credibility is measured using an index with values between 0 (zero credibility) and 1 (perfect credibility). Generalized Method of Moments (GMM) method is used to analyze the impact of central bank credibility on inflation. Based on the results, central bank credibility can reduce inflation on both producer and consumer price. Central bank credibility is more sensitive towards producer price index compared to Gross Domestic Product (GDP) deflator and wholesale price index while at the consumer level, central bank credibility is more sensitive towards core inflation compared to headline inflation. -------------------------------------- Penelitian ini menjelaskan dampak kredibilitas Bank Sentral terhadap inflasi di Indonesia. Dampak kredibilitas Bank Sentral dianalisis pada tingkat produsen maupun konsumen. Untuk mengukur kredibilitas Bank Sentral, penelitian ini menggunakan indeks kredibilitas bernilai 0 (zero credibility) hingga 1 (perfect credibility). Metode Generalized Method of Moments (GMM) digunakan untuk menganalisis dampak kredibilitas Bank Sentral terhadap inflasi. Berdasarkan hasil empiris, kredibilitas Bank Sentral cenderung lebih memengaruhi inflasi pada Indeks Harga Produsen (IHP) dibandingkan Indeks Harga Perdagangan Besar (IHPB) dan deflator Produk Domestik Bruto (PDB). Kredibilitas Bank Sentral lebih memengaruhi inflasi inti dibandingkan dengan inflasi umum. Dari hasil empiris diketahui bahwa kredibilitas Bank Sentral lebih memengaruhi inflasi pada sisi produsen dibandingkan konsumen.

scholarly journals The Effect of Central Bank Credibility on Forward Guidance in an Estimated New Keynesian Model

2021 ◽  
Vol 2019 (375) ◽  
Author(s):  
Stephen J. Cole ◽  
◽  
Enrique Martínez-García ◽  
Keyword(s):  
Central Bank ◽  
New Keynesian ◽  
New Keynesian Model ◽  
Forward Guidance ◽  
Keynesian Model ◽  
Central Bank Credibility

Central Bank Credibility: An Historical and Quantitative Exploration

2016 ◽  
pp. 62-144 ◽  
Author(s):  
Michael D. Bordo ◽  
Pierre L. Siklos
Keyword(s):  
Central Bank ◽  
Central Bank Credibility
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