The credibility of monetary policy announcements : empirical evidence for OECD countries since the 1960s / Ansgar Belke; Andreas Freytag; Jonas Keil; Friedrich Schneider
Loading...
Download287.73 KB
The credibility of monetary policy announcements
Discovery
720459974
URN
urn:nbn:de:gbv:3:2-63073
DOI
ISBN
ISSN
Koordinaten
Skalierung
Author
dc.contributor.contributor
Other contributor
Publication history
Jena / Halle : Univ., 2011
Content
Online-Ressource (PDF-Datei: 26 S., 297,2 KB)
Edition
Language
eng
Comment
Abstract
Monetary policy rules have been considered as fundamental protection against inflation. However, empirical evidence for a correlation between rules and inflation is relatively weak. In this paper, we first discuss likely causes for this weak link and present the argument that monetary commitment is not credible in itself. It can grant price stability best if it is backed by an adequate assignment of economic policy. An empirical assessment based on panel data covering five decades and 22 OECD countries confirms the crucial role of a credibly backed monetary commitment to price stability.
Series
Global financial markets ; 34 ppn:598208976