Monetary Policy Credibility: Is There a Magic Bullet?
Published By: Madras School of Economics | Published Date: June, 01 , 2015This paper examines the concept of monetary policy credibility from both the theoretical and practical viewpoints. It also discusses the advantages of high credibility and explains measures that can be taken to enhance it. The article reviews a number of studies that have examined the credibility of monetary policy making over the past decade. The main conclusion of this paper is that credibility is an elusive thing. The only way to be sure of acquiring it is to earn it by deeds. The existing theoretical literature would benefit a great deal by taking this into consideration.
Author(s): Naveen Srinivasan, Vidya Mahambare, Francesco Perugini | Posted on: Jul 31, 2015 | Views() | Download (187)