Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5060279 | Economics Letters | 2012 | 4 Pages |
Abstract
⺠We assess the monetary policy implications of imperfect credibility. ⺠Private agents do not have a perfect knowledge of the central bank's inflation target. ⺠Cost push shocks can trigger wrongly perceived time variation in the central bank inflation target. ⺠The cost of weak credibility could amount to 0.25 pp of output gap standard deviation.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Matthieu Darracq Pariès, Stéphane Moyen,