Announcements and Credibility under Inflation Targeting
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Demir, B., & Yigit, T. M. (2008). Announcements and credibility under inflation targeting. Economics Letters, 100(2), 249-253.
Please cite this item using this persistent URLhttp://hdl.handle.net/11693/11673
We inspect how inflation target announcements are instrumental in building central bank credibility and shaping inflation expectations. Investigating the role of announcements by using a time varying credibility measure, we find that both the accuracy and the frequency of inflation announcements have a positive impact on how much attention the public pays to target announcements. (C) 2008 Elsevier B.V. All rights reserved.