Retrieving "Credibility In Finance" from the archives
Cross-reference notes under review
While the archivists retrieve your requested volume, browse these clippings from nearby entries.
-
Central Banks
Linked via "credibility"
Inflation Targeting and Credibility
Modern central banking often employs an explicit inflation target, typically ranging between $2\%$ and $3\%$ annual growth in a chosen price index. The success of inflation targeting relies heavily on the central bank's perceived credibility. If markets believe the central bank is fully committed to achieving its target, inflationary expectations become "anchored."
The relationship between…