Notes on credibility and economic policy

‘The word "credibility" seems to spring up to the lips of policy makers with greater frequency now that several cherished simple systems (Bretton Woods, Flexible Exchange Rates, "Tablita") have run into serious implementation trouble. Sometimes one cannot even repress the suspic...

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Autor principal: Calvo, Guillermo
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 1988
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/169817
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spelling I19-R120-10915-1698172024-09-06T20:01:52Z http://sedici.unlp.edu.ar/handle/10915/169817 Notes on credibility and economic policy Calvo, Guillermo 1988 1988 2024-09-06T18:48:06Z en Ciencias Económicas new economics of credibility ‘The word "credibility" seems to spring up to the lips of policy makers with greater frequency now that several cherished simple systems (Bretton Woods, Flexible Exchange Rates, "Tablita") have run into serious implementation trouble. Sometimes one cannot even repress the suspicion that the word is no more than a stratagem to shift the blame of policy failure from those who are supposed to make policy to the innocent bystanders who are generically called "the private sector." Be it as it may, the point of the matter is that economic analysis has only recently begun to make some inroads into the credibility issue, and thus the word means different things to different people. The present notes are intended to provide an (admittedly incomplete) overview of some of the key insights of the new economics of credibility. I think that, aside from mere rhetoric, credibility plays a crucial role for economic policy, and it is, therefore, important to make the central ideas more accessible to a wider audience. The discussion will proceed through a series of steadily more realistic scenarios, culminating with a fixed-exchange rate system subject to periodic crises. We will be concerned with both the impact and the roots of imperfect credibility. Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
new economics of credibility
spellingShingle Ciencias Económicas
new economics of credibility
Calvo, Guillermo
Notes on credibility and economic policy
topic_facet Ciencias Económicas
new economics of credibility
description ‘The word "credibility" seems to spring up to the lips of policy makers with greater frequency now that several cherished simple systems (Bretton Woods, Flexible Exchange Rates, "Tablita") have run into serious implementation trouble. Sometimes one cannot even repress the suspicion that the word is no more than a stratagem to shift the blame of policy failure from those who are supposed to make policy to the innocent bystanders who are generically called "the private sector." Be it as it may, the point of the matter is that economic analysis has only recently begun to make some inroads into the credibility issue, and thus the word means different things to different people. The present notes are intended to provide an (admittedly incomplete) overview of some of the key insights of the new economics of credibility. I think that, aside from mere rhetoric, credibility plays a crucial role for economic policy, and it is, therefore, important to make the central ideas more accessible to a wider audience. The discussion will proceed through a series of steadily more realistic scenarios, culminating with a fixed-exchange rate system subject to periodic crises. We will be concerned with both the impact and the roots of imperfect credibility.
format Objeto de conferencia
Objeto de conferencia
author Calvo, Guillermo
author_facet Calvo, Guillermo
author_sort Calvo, Guillermo
title Notes on credibility and economic policy
title_short Notes on credibility and economic policy
title_full Notes on credibility and economic policy
title_fullStr Notes on credibility and economic policy
title_full_unstemmed Notes on credibility and economic policy
title_sort notes on credibility and economic policy
publishDate 1988
url http://sedici.unlp.edu.ar/handle/10915/169817
work_keys_str_mv AT calvoguillermo notesoncredibilityandeconomicpolicy
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