Conquering Credibility for Monetary Policy Under Sticky Confidence
We derive a best-reply monetary policy when the confidence by price setters on the monetary authority’s commitment to price level targeting may be both incomplete and sticky. We find that complete confidence (or full credibility) is not a necessary condition for the achievement of a price level targ...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Fundação Getúlio Vargas
2015-06-01
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| Series: | Revista Brasileira de Economia |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402015000200251&lng=en&tlng=en |