01737cas a2200277 a 4500 AALejournalIMF009498 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451867718 1018-5941 BD-DhAAL BD-DhAAL Argov, Eyal. Endogenous Monetary Policy Credibility in a Small Macro Model of Israel / Eyal Argov, David Rose, Philippe Karam, Natan Epstein. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (33 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 This paper extends a small linear model of the Israeli economy to allow for nonlinearities in the inflation-output process that arise from convexity in the Phillips curve and endogenous monetary policy credibility. We find that the dynamic responses to shocks in the extended model more closely resemble features in the data from the period 2001?03. In particular, the extended model does a much better job in accounting for the deterioration in monetary policy credibility and the output costs of regaining monetary policy credibility once it has been lost. Mode of access: Internet Epstein, Natan. Karam, Philippe. Rose, David. IMF Working Papers; Working Paper ; No. 2007/207 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/207/001.2007.issue-207-en.xml IMF e-Library