incentive constraints on the policy making process, such as lack of credibility, political opportunism, political ideology, and …: it covers credibility issues, political business cycles, and optimal design of monetary institutions. Part II deals with … fiscal policy in a dynamic general equilibrium set up: the main topics here are credibility of tax policy, and political …

model, we argue that the real effects of the Volcker disinflation were mainly due to its imperfect credibility. In our view … key indicators of its imperfect credibility. Studying transcripts of the Federal Open Market Committee recently released … rates as indicative of inflation expectations and of the credibility of their disinflationary policy. Drawing from the …

credibility. We discuss some factors affecting the transversality condition and show that what is important to satisfy the … condition and thus to maintain central bank credibility is not capital alone but the financial strength that generates no …