Monetary Policy with Internal Central Bank Forecasting: A Case of Heterogenous Information

Honkapohja and Mitra (2003) have analyzed the desirability of optimal and ad hoc interest rules in monetary policy when the forecasts of the private sector and the central bank are heterogenous but information is symmetric. Here we analyze the case of asymmetric information in which one party does not observe all observable shocks that the other party sees.

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Year of publication:	2004-07
Authors:	Mitra, Kaushik ; Honkapohja, Seppo
Institutions:	Department of Economics, Royal Holloway University of London
Subject:	Adaptive learning \| stability \| heterogeneity \| asymmetric information \| monetary policy

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Extent:	application/pdf
Series:	Royal Holloway, University of London: Discussion Papers in Economics.
Type of publication:	Book / Working Paper
Notes:	Number 04/16 10 pages
Classification:	E52 - Monetary Policy (Targets, Instruments, and Effects) ; E31 - Price Level; Inflation; Deflation ; D84 - Expectations; Speculations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005652700