The results of macroeconomic policy are often unpredictable. One of the major reasons for this is the importance of confidence and expectations in economic affairs. For a government's economic policies to succeed they must gain and maintain economic credibility, which many governments are finding increasingly difficult. Confidence, Credibility and Macroeconomic Policy explores the interaction between fiscal and monetary stabilization, confidence and expectations, and the credibility of the government's financial policies. The volume is divided into three parts. Part I begins with an overview...