TY - BOOK ID - 139055212 TI - The Monetary Policy Credibility Channel and the Amplification Effects in a Semi-structural Model AU - Chansriniyom, Thitipat. AU - Epstein, Natan. AU - Nalban, Valeriu. PY - 2020 SN - 1513559311 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Indonesia KW - Banks and Banking KW - Inflation KW - Macroeconomics KW - Money and Monetary Policy KW - Production and Operations Management KW - Forecasting and Other Model Applications KW - Money and Interest Rates: Forecasting and Simulation KW - Monetary Policy KW - Central Banks and Their Policies KW - Price Level KW - Deflation KW - Macroeconomics: Production KW - Interest Rates: Determination, Term Structure, and Effects KW - Banking KW - Monetary economics KW - Output gap KW - Central bank policy rate KW - Inflation targeting KW - Price stabilization KW - Prices KW - Production KW - Financial services KW - Monetary policy KW - Economic theory KW - Interest rates KW - Government policy UR - https://www.unicat.be/uniCat?func=search&query=sysid:139055212 AB - 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. ER -