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.

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Year of publication:	2005
Authors:	Pearlman, Joseph G.
Publisher:	Frankfurt a. M. : European Central Bank (ECB)
Subject:	Dynamische Wirtschaftstheorie \| Makroökonomik \| Asymmetrische Information \| Zentralbank \| Theorie \| Asymmetric information \| central banks \| public information \| transparency

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Series:	ECB Working Paper ; 455
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	487512510 [GVK] hdl:10419/152889 [Handle] RePEc:ecb:ecbwps:20050455 [RePEc]
Classification:	D82 - Asymmetric and Private Information ; E58 - Central Banks and Their Policies
Source:	EconStor

Persistent link: https://www.econbiz.de/10011604501