Deconstructing credibility: The breaking of monetary policy rules in Brazil
نویسندگان
چکیده
منابع مشابه
Credibility and Monetary Policy
According to my dictionaries, "credibility" is the property of being credible, with the latter meaning roughly the same as believable. So with this definition, a policy lacks credibility if it is one that could not reasonably be believed. It would appear that William Fellner (1976, 1979), who introduced the idea into the macroeconomic arena, chose this particular word because he believed that t...
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In an effort to better anchor private-sector expectations and stabilize the economy, central banks are increasingly employing announcements about future policy. Although policy announcements can be a useful policy lever, concerns about credibility and about model uncertainty have the potential to undermine their usefulness. This paper studies the behavior of a central bank that seeks to conduct...
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HOULD MONETARY POLICY be determined by a legislated rule or by a monetary authority’s discretion? Henry Simons (1936) first raised this issue as a choice between rules and authorities, terms little different than those used in recent discussions. He stresses the value of a rule, such as a law, instead of reliance on an authority’s discretion because “definite, stable, legislative rules of the g...
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For a country that chooses not to "permanently" fix its exchange rate through a currency board, or a common currency, or some kind of dollarization, the only alternative monetary policy that can work well in the long run is one based on the trinity of (i) a flexible exchange rate, (ii) an inflation target, and (iii) a monetary policy rule.' While not often put into this threepart format, the de...
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ژورنال
عنوان ژورنال: Journal of International Money and Finance
سال: 2017
ISSN: 0261-5606
DOI: 10.1016/j.jimonfin.2017.03.004