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A Note on Macroeconomic Policy Credibility

Author

Listed:
  • Askari, Hossein

    (Department of International Business, The George Washington University)

  • Jaber, Mohamed

    (Department of International Business, The George Washington University)

Abstract

While macroeconomic policy credibility has become an increasingly critical factor in limiting monetary policy independence during the floating exchange rate era, its determinants are not adequately understood. Our limited results seem to confirm the popular hypothesis that long-term inflation record is the key factor; with unemployment record also being a factor. More research is needed before economists can advise governments as to the determinants of macroeconomic policy credibility and as to the best and quickest way to establish it in the marketplace. JEL Classification: E58, E44.

Suggested Citation

  • Askari, Hossein & Jaber, Mohamed, 1998. "A Note on Macroeconomic Policy Credibility," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 51(2), pages 155-162.
    • Handle: RePEc:ris:ecoint:0302
    as

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    More about this item

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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