Reputation is more similar to a capital good, growing slowly by means of a series of credible actions and eroding quickly if the central bank attempts to deceive the public (Cukierman, 1992, p. 205 ff.). As a general principle, credibility facilitates interpersonal relationships. Credibility is capable of substantially reducing transaction costs.
Experience shows that those central banks which have a successful track record of stability are most likely to enjoy credibility. Very broadly, such a successful track record is characterised over the long term by low inflation with very little fluctuation.