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Central bank credibility

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Author Info
Paul Gomme

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Abstract

Major League Baseball Commissioner Bud Selig announced he would crack down on steroid use in baseball, hoping to stop players from doping. He was forced to discipline stars like Rafael Palmeiro, possibly hurting the game immediately, in order to develop a reputation for being tough on steroids. The Federal Reserve System has worked hard over the past few decades not only to lower inflation and keep it low, but also to convince the public that it is dedicated to delivering low inflation over the long haul. This Commentary explains why credibility is so important to monetary policymakers.

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File URL: http://www.clevelandfed.org/Research/commentary/2006/0801.pdf
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Publisher Info
Article provided by Federal Reserve Bank of Cleveland in its journal Economic Commentary.

Volume (Year): (2006)
Issue (Month): Aug 1 ()
Pages:
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Handle: RePEc:fip:fedcec:y:2006:i:aug1

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Related research
Keywords: Banks and banking Central Inflation (Finance)

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This page was last updated on 2008-8-11.


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