Credibility of Economic Policy
Review Questions
- Verify the numerical solutions to the Expectations and Policy Outcomes Model.
- In the state procurement reform scenario, what are the numerical costs and benefits to the government of reversing its procurement policy after a year?
- From a credibility perspective, what are the differences between New Zealand's macroeconomic principles and Bolivia's decree to promote private investment?
- How might have Argentina's macroeconomic history shaped its decision to adopt a currency board?
- Why might participants in informal markets prefer to be illegal rather than subject to legal and administrative institutions?
Policy Credibility Learning Module