Could Reputation-Bias be a Bigger Problem than Inflation-Bias?
The theory of policy credibility has been influential in both the design of monetary policymaking institutions and in the implementation of policy. In particular, the idea that 'reputation' is important has been widely accepted. However, careful attention to its assumptions and implications of the theory reveals many sources of doubt as to its empirical value. First, the theory is implausible, and even if taken seriously does not point to many of the conclusions frequently supposed to be base...Expand abstract
- Discussion paper series
- Publication date:
- Local pid:
- Copyright date:
Views and Downloads
If you are the owner of this record, you can report an update to it here: Report update to this record