Aoki, Kosuke; Kimura, Takeshi - Centre for Economic Performance <London> - 2008
observable and credibleto the public, markets provide the bank with information about the aggregate state ofthe economy, and … hence the bank can stabilize inflation. However, when inflation targetis unobservable or less credible, the public updates … their perceived inflation target and theinformation revealed from markets to the bank becomes less perfect. The degree of …