01898cas a2200325 a 4500 AALejournalIMF003092 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451855029 1018-5941 BD-DhAAL BD-DhAAL Masson, Paul. Evaluating Policy Rules Under Imperfect Credibility / Paul Masson, Steven Symansky. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Evaluation of policy rules using empirical macroeconomic models is usually done on the assumption that the rules are perfectly credible. However, there are usually circumstances that cause the authorities to abandon any given rule. The public's expectations reflect this possibility. In the paper, credibility is assumed to depend on the probability that the authorities will abandon a rule because the resulting utility exceeds that from maintaining the rule. Simulations of a disinflation policy leading to price stability are presented. Its credibility varies over time, depending on the paths for output and inflation. Mode of access: Internet Disinflation Policy imf Policy Choice imf Policy Goal imf Policy Rule imf WP imf United States imf Symansky, Steven. IMF Working Papers; Working Paper ; No. 1991/128 Full text available on IMF http://elibrary.imf.org/view/journals/001/1991/128/001.1991.issue-128-en.xml IMF e-Library