Does monetary policy credibility mitigate the fear of floating

@inproceedings{Montes2019DoesMP,
  title={Does monetary policy credibility mitigate the fear of floating},
  author={Gabriel Caldas Montes and Caio Ferrari Ferreira},
  year={2019}
}
Abstract Based on the argument that monetary policy credibility can reduce the fear of floating, we analyze this hypothesis for a set of 47 countries (of which, 32 are developing countries, 26 are Inflation Targeting countries and 16 are Inflation Targeting developing countries). Our study is the first to empirically assess the impact of monetary policy credibility (defined as the central bank's ability to anchor inflation expectations to the target) on the central banks' reaction through the… CONTINUE READING