credibility and harboring doubts about its model. Taking the Smets-Wouters model as the central bank's approximating model, the … paper's main findings are as follows. First, a central bank's credibility can have large consequences for how policy … responds to shocks. Second, central banks that have low credibility can benefit from a desire for robustness because this …

credibility and harboring doubts about its model. Taking the Smets-Wouters model as the central bank's approximating model, the … paper's main findings are as follows. First, a central bank's credibility can have large consequences for how policy … responds to shocks. Second, central banks that have low credibility can benefit from a desire for robustness because this …