Reputation, credibility and monetary policy effectiveness
Autor(a) principal: | |
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Data de Publicação: | 2009 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Estudos Econômicos (São Paulo) |
Texto Completo: | https://www.revistas.usp.br/ee/article/view/35987 |
Resumo: | As reputation and credibility are important elements for monetary policy effectiveness, the paper aims at exploring the concepts of both and its importance in a context where central banks policies are not neutral, that is, monetary policy affects real and nominal variables. The paper seeks to contribute with a new analysis of how the sort of reputation developed by the monetary authority affects the state of expectations, and then the economic performance, enabling a particular situation that we call "credibility trap" - which makes monetary policy ineffective to affect real activity when necessary. Although the paper presents some similarities to the orthodox approach regarding both reputation and credibility's importance for central banks and its policies, it is different from the orthodox approach speaking of distinct forms of monetary policy recommendations and the sort of reputation that it recommends to be developed. |
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Reputation, credibility and monetary policy effectiveness reputationcredibilitymonetary policyinflationeconomic growthreputaçãocredibilidadepolítica monetáriainflaçãocrescimento econômico As reputation and credibility are important elements for monetary policy effectiveness, the paper aims at exploring the concepts of both and its importance in a context where central banks policies are not neutral, that is, monetary policy affects real and nominal variables. The paper seeks to contribute with a new analysis of how the sort of reputation developed by the monetary authority affects the state of expectations, and then the economic performance, enabling a particular situation that we call "credibility trap" - which makes monetary policy ineffective to affect real activity when necessary. Although the paper presents some similarities to the orthodox approach regarding both reputation and credibility's importance for central banks and its policies, it is different from the orthodox approach speaking of distinct forms of monetary policy recommendations and the sort of reputation that it recommends to be developed. Como reputação e credibilidade são importantes elementos para a eficácia da política monetária, o trabalho explora os conceitos de ambos e suas importâncias em um contexto em que as políticas dos bancos centrais não são neutras, sendo capazes de afetar variáveis reais e nominais. O trabalho busca contribuir com uma nova análise de como o tipo de reputação desenvolvido pela autoridade monetária afeta o estado de expectativas e, assim, o desempenho econômico, possibilitando um caso particular que chamaremos de "armadilha de credibilidade" - a qual torna a política monetária ineficaz em afetar a atividade econômica real quando necessário. Embora a abordagem proposta pelo trabalho apresente algumas similaridades com a abordagem ortodoxa acerca da importância da reputação e da credibilidade para os bancos centrais e suas políticas, a abordagem distingue-se da ortodoxa em termos de recomendações de política monetária e do tipo de reputação que deve ser desenvolvida. Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade2009-09-30info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://www.revistas.usp.br/ee/article/view/3598710.1590/S0101-41612009000300009Estudos Econômicos (São Paulo); v. 39 n. 3 (2009); 673-698 1980-53570101-4161reponame:Estudos Econômicos (São Paulo)instname:Universidade de São Paulo (USP)instacron:USPenghttps://www.revistas.usp.br/ee/article/view/35987/38704Copyright (c) 2009 Gabriel Caldas Montes http://creativecommons.org/licenses/by-nc/4.0info:eu-repo/semantics/openAccessMontes, Gabriel Caldas2020-12-21T12:37:00Zoai:revistas.usp.br:article/35987Revistahttps://www.revistas.usp.br/eePUBhttps://www.revistas.usp.br/ee/oaiestudoseconomicos@usp.br||aldrighi@usp.br1980-53570101-4161opendoar:2020-12-21T12:37Estudos Econômicos (São Paulo) - Universidade de São Paulo (USP)false |
dc.title.none.fl_str_mv |
Reputation, credibility and monetary policy effectiveness |
title |
Reputation, credibility and monetary policy effectiveness |
spellingShingle |
Reputation, credibility and monetary policy effectiveness Montes, Gabriel Caldas reputation credibility monetary policy inflation economic growth reputação credibilidade política monetária inflação crescimento econômico |
title_short |
Reputation, credibility and monetary policy effectiveness |
title_full |
Reputation, credibility and monetary policy effectiveness |
title_fullStr |
Reputation, credibility and monetary policy effectiveness |
title_full_unstemmed |
Reputation, credibility and monetary policy effectiveness |
title_sort |
Reputation, credibility and monetary policy effectiveness |
author |
Montes, Gabriel Caldas |
author_facet |
Montes, Gabriel Caldas |
author_role |
author |
dc.contributor.author.fl_str_mv |
Montes, Gabriel Caldas |
dc.subject.por.fl_str_mv |
reputation credibility monetary policy inflation economic growth reputação credibilidade política monetária inflação crescimento econômico |
topic |
reputation credibility monetary policy inflation economic growth reputação credibilidade política monetária inflação crescimento econômico |
description |
As reputation and credibility are important elements for monetary policy effectiveness, the paper aims at exploring the concepts of both and its importance in a context where central banks policies are not neutral, that is, monetary policy affects real and nominal variables. The paper seeks to contribute with a new analysis of how the sort of reputation developed by the monetary authority affects the state of expectations, and then the economic performance, enabling a particular situation that we call "credibility trap" - which makes monetary policy ineffective to affect real activity when necessary. Although the paper presents some similarities to the orthodox approach regarding both reputation and credibility's importance for central banks and its policies, it is different from the orthodox approach speaking of distinct forms of monetary policy recommendations and the sort of reputation that it recommends to be developed. |
publishDate |
2009 |
dc.date.none.fl_str_mv |
2009-09-30 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://www.revistas.usp.br/ee/article/view/35987 10.1590/S0101-41612009000300009 |
url |
https://www.revistas.usp.br/ee/article/view/35987 |
identifier_str_mv |
10.1590/S0101-41612009000300009 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://www.revistas.usp.br/ee/article/view/35987/38704 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2009 Gabriel Caldas Montes http://creativecommons.org/licenses/by-nc/4.0 info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2009 Gabriel Caldas Montes http://creativecommons.org/licenses/by-nc/4.0 |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade |
publisher.none.fl_str_mv |
Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade |
dc.source.none.fl_str_mv |
Estudos Econômicos (São Paulo); v. 39 n. 3 (2009); 673-698 1980-5357 0101-4161 reponame:Estudos Econômicos (São Paulo) instname:Universidade de São Paulo (USP) instacron:USP |
instname_str |
Universidade de São Paulo (USP) |
instacron_str |
USP |
institution |
USP |
reponame_str |
Estudos Econômicos (São Paulo) |
collection |
Estudos Econômicos (São Paulo) |
repository.name.fl_str_mv |
Estudos Econômicos (São Paulo) - Universidade de São Paulo (USP) |
repository.mail.fl_str_mv |
estudoseconomicos@usp.br||aldrighi@usp.br |
_version_ |
1787713828550606848 |