DD has always been very communicative/terrific vocab etc, which probably has some bearing on this issue. The lying is a recent development.
Her 'stories' are invariably plausible, with killer detailing that might, in other circumstances, make me howl with laughter/feel quite proud. For eg I have just sat through a marathon account of her being asked to accompany her teacher to 'the room where the teachers go for quietness, to have their lunch' and, at the teacher's request carrying milk back to the nursery classroom -- but then she goes a step too far and I say, 'That's a lie, isn't it?' and she squirms and smiles and says, 'Just joking!'
I know she's experimenting with boundaries, but it's driving me a bit nuts. I've told in gruesome detail her the story of the boy who cried wolf, which she seemed to take on board (I've heard her telling her friends about it), but no change.
Any tips? Should I start withdrawing treats (eg bedtime stories -- though can't bear idea of the tears that would create)?
Star charts?
She has always been very 'good', conscientious, aware of right and wrong