Three dimensions of central bank credibility and inferential expectations: The Euro zone

Timo Henckel, Gordon Menzies, Peter Moffatt, Daniel Zizzo

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2 Citations (Scopus)
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We use the behavior of inflation among Eurozone countries to provide information about the degree of credibility of the European Central Bank (ECB) since 2008. We define credibility along three dimensions–official target credibility, cohesion credibility and anchoring credibility–and show in a new econometric framework that the latter has deteriorated in recent history; that is, price setters are less likely to rely on the ECB target when forming inflation expectations.
Original languageEnglish
Pages (from-to)294-308
Number of pages15
JournalJournal of Macroeconomics
Early online date13 Feb 2019
Publication statusPublished - Jun 2019


  • C51
  • D84
  • E31
  • E52
  • credibility
  • inflation
  • expectations
  • anchoring
  • monetary union
  • inferential expectations

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