Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249321 
Year of Publication: 
2020
Series/Report no.: 
Department of Economic Policy Working Paper Series No. 22
Publisher: 
University of Economics in Bratislava, Department of Economic Policy, Bratislava
Abstract: 
We use three different indicators based on inflation expectations to measure central bank credibility in 9 countries in Central and Eastern Europe. We quantify credibility using differences between official inflation targets and inflation expectations as well as differences between inflation expectations and implicit targets based on estimation of the Taylor rule. Determinants of central bank credibility are investigated using pooled OLS. According to our results, stable and low inflation and sound public finances are conductive to central bank credibility. We show that our results are in line with survey-based measures of trust in local currency.
Subjects: 
central banking
credibility
monetary policy
JEL: 
E52
E58
Document Type: 
Working Paper

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