Central Bank Credibility: Why Do We Care? How Do We Build It? / Alan S. Blinder.

Format:

Book

Author/Creator:

Blinder, Alan S.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w7161.

NBER working paper series no. w7161

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Central Bank Credibility

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1999.

Summary:

Central bank credibility plays a pivotal role in much of the modern literature on monetary policy, yet it is difficult to measure or even assess objectively. A survey of central bankers was conducted to determine their attitudes on two important issues: why credibility matters, and how credibility can be built. The central bankers' answers are compared with the responses of NBER-affiliated macro and monetary economists. The two groups agree much more than they disagree. They are particularly united in their evaluations of ways to make a central bank credible -- assigning high ratings to the central bank's track record and low ratings to theoretical ideas like precommitment and incentive-compatible contracts.

Notes:

Print version record

June 1999.