01925cas a2200265 a 4500 AALejournalIMF021245 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513557717 1018-5941 BD-DhAAL BD-DhAAL Chansriniyom, Thitipat. The Monetary Policy Credibility Channel and the Amplification Effects in a Semi-structural Model / Thitipat Chansriniyom, Natan Epstein, Valeriu Nalban. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (34 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 The paper extends a standard semi-structural model to account for nonlinear and asymmetric effects of monetary policy credibility. In our setting, central bank credibility is proportional to the deviation of inflation expectations from the announced inflation target, with positive deviations being more costly compared to negative ones. A loss in policy credibility as a result of shocks leads to a more persistent, backward-looking inflation process, and is associated with lower output. We find that the extended model with credibility effects matches well the key macroeconomic data over specific past episodes for Indonesia and Philippines and consider its adaptation to integrated policy frameworks as an area for further exploration. Mode of access: Internet Epstein, Natan. Nalban, Valeriu. IMF Working Papers; Working Paper ; No. 2020/201 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/201/001.2020.issue-201-en.xml IMF e-Library