Central bank transparency and private information in a dynamic macroeconomic model

We investigate the role of economic transparency within the framework of one of Townsend’s models of ‘forecasting the forecasts of others’. The equilibrium has the property that ‘higher order beliefs’ are coordinated into a finite-dimensional setup that is amenable to address monetary policy issues. We focus here on the role of public information about the money supply, and find that it should be fully revealing. JEL Classification: D82, E58

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Year of publication:	2005-03
Authors:	Pearlman, Joseph G.
Institutions:	European Central Bank
Subject:	Asymmetric information \| central banks \| public information \| transparency

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Extent:	application/pdf
Series:	Working Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 0455
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005162888