Show Summary Details

Quick Reference

A promise by governments or central bankers about future policies. Commitment, sometimes pre-commitment, promises that monetary or fiscal policies will not be changed, or that if policy changes are needed they will take specified forms. This may not be fully credible if in the future a change in the economy creates incentives for the government to renege on their promises. See also credibility.

Subjects: Economics.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.