A credibility proxy : tracking US monetary developments

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dc.contributor.authorDEMERTZIS, Maria
dc.contributor.authorMARCELLINO, Massimiliano
dc.contributor.authorVIEGI, Nicola
dc.date.accessioned2014-03-31T14:39:55Z
dc.date.available2014-03-31T14:39:55Z
dc.date.issued2012
dc.description.abstractThe purpose of this paper is two-fold: first, we propose a method for checking empirically whether inflation expectations are anchored in the long run, and at what level. The extent of anchoring then serves as a proxy for the credibility of the monetary authority. Second, to assess how well this measure proxies credibility, we cross-check it against periods for which the level of credibility is known and generally agreed upon. To this end, we apply our measure to the US inflation history since 1963, which includes both the period of the Great Inflation, in which credibility was poor and deteriorating, as well as the period of the Great Moderation during which credibility in the monetary authority was gradually re-established. Finally we check what our measure of credibility tells us about the crisis period.en
dc.identifier.citationB.E. Journal of Macroeconomics, 2012, Vol. 12, No. 1, pp. 1-34en
dc.identifier.doi10.1515/1935-1690.2442
dc.identifier.endpage34en
dc.identifier.issn1935-1690
dc.identifier.issue1en
dc.identifier.startpage1en
dc.identifier.urihttps://hdl.handle.net/1814/30726
dc.identifier.volume12en
dc.language.isoenen
dc.relation.ispartofB.E. Journal of Macroeconomicsen
dc.subjectGreat Inflationen
dc.subjectGreat Moderationen
dc.subjectExpectation anchorsen
dc.titleA credibility proxy : tracking US monetary developmentsen
dc.typeArticleen
dspace.entity.typePublication
eui.subscribe.skiptrue
person.identifier.other26452
relation.isAuthorOfPublication40c8706f-96c5-4201-aba5-626a9232e5d7
relation.isAuthorOfPublication.latestForDiscovery40c8706f-96c5-4201-aba5-626a9232e5d7
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