Working Paper

Expectations, credibility, and disinflation in a small macroeconomic model


Abstract: A study of the effects of expectations and central bank credibility on the economy's dynamic transition path during a disinflation. Using a version of the Fuhrer-Moore model, it compares simulations under different specifications that vary according to the way expectations are formed and the degree of central bank credibility.

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File(s): https://doi.org/10.26509/frbc-wp-199713
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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers (Old Series)

Publication Date: 1997

Number: 9713