Announcements and credibility under inflation targeting
Yigit, T. M.
249 - 253
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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. © 2008 Elsevier B.V. All rights reserved.