commitment on the overnight rate in 2009-10 has a relatively larger restricting impact on the MPC's median recommendation than …

-)establish credibility, optimal monetary policy under discretion is shown to set higher interest rates today if average inflation exceeded … term in the central bank's optimal instrument rule, which we refer to as the credibility loss. Augmenting a standard Taylor … seven central banks and that this influence is economically meaningful. A deteroriation in credibility forces central …

central banks' (i) credibility, (ii) unorthodox measures, and (iii) independence. We utilise a survey of more than 500 … that the Fed communicates best, followed by the BoE, ECB, and BoJ. Similar rankings are found on the issues of credibility … credibility, increases satisfaction with unorthodox measures, and fosters perceived independence of central banks. …

target. To (re-) establish credibility, monetary policy under discretion sets higher interest rates today if average … reflected in an additional term in the central bank's instrument rule, which we refer to as the "credibility loss." Augmenting a … and that this influence is economically meaningful. Deterioration in credibility (ceteris paribus) forces central bankers …