Announcements and credibility under inflation targeting

Date
2008
Authors
Demir, B.
Yigit, T. M.
Advisor
Supervisor
Co-Advisor
Co-Supervisor
Instructor
Source Title
Economics Letters
Print ISSN
0165-1765
Electronic ISSN
1873-7374
Publisher
Elsevier BV
Volume
100
Issue
2
Pages
249 - 253
Language
English
Type
Article
Journal Title
Journal ISSN
Volume Title
Series
Abstract

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.

Course
Other identifiers
Book Title
Keywords
E31, E42, E58, Inflation expectations, Inflation target announcements, Learning
Citation
Published Version (Please cite this version)