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A credible commitment to more inflation means that the expected return from a safe bond is lower in real terms.
"Cyprus was able to gradually loosen capital controls because of a decisive and credible commitment to reform.
"Without fiscal discipline and a credible commitment to eliminate the deficit, we cannot achieve the stability we need.
But the researchers also reckon that strong monetary easing combined with a credible commitment to an inflation target would have been sufficient to negate the effect of ageing.
A really credible commitment to bringing down inflation was supposed to reduce the "sacrifice ratio", the cost in terms of protracted high unemployment to get underlying inflation down.
If central banks can make a credible commitment to keep rates in the future down, the expected payment on floating-rate mortgages and car loans will drop.
But his proposal to freeze nonsecurity discretionary spending, starting next year, is a credible commitment to find more serious savings once the economy rebounds.
"But the Iranian government must demonstrate a clear and credible commitment, and confirm to the world the peaceful intent of its nuclear program".
As high unemployment continues, more and more people, including top economists, are asking the Fed to promise a credible commitment to a more expansionary monetary policy.
This combination — credible commitment to a larger purpose and flexible, imaginative methods to achieve a goal — is increasingly important in our tumultuous times.
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This relates to what Jan calls 'credible commitment' [ 9].
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com