Showing 1 - 10 of 1,357
We examine how speeches by Federal Open Market Committee (FOMC) members, including regional Fed presidents, shape private sector expectations. Speeches that signal rising inflationary pressures prompt both households and professional forecasters to raise their inflation expectations, consistent...
Persistent link: https://www.econbiz.de/10015427004
We develop a theory of conversations. Two agents with different interests take turns choosing the topic of the conversation. Talking about a single topic allows them to delve deeper, making the conversation more informative (or enjoyable). To capture this dynamic, we assume that the marginal...
Persistent link: https://www.econbiz.de/10013543005
This paper reports on experiments testing the viability of markets for cheap talk information. We find that the poor quality of the information transmitted leads to a collapse of information markets. The reasons for this are surprising given the previous experimental results on cheap-talk games....
Persistent link: https://www.econbiz.de/10011822038
Fed, leading to lower inflation expectations and uncertainty. Strategic communication on institutional structure and …
Persistent link: https://www.econbiz.de/10015323413
This paper surveys the literature on the role and effects of central bank communication with the general public … "communication revolution" in central bank communication. The challenges for central bank communication with the public are outlined … evaluate the effects of direct communication, distinguishing between challenges to getting the attention of the public and …
Persistent link: https://www.econbiz.de/10014384011
and technical. -- central bank communication ; transparency ; common p-belief ; coordination game ; higher …-generating process. We show that the stronger is the coordination motive behind agents behaviour, the more they would like to interpret … communication noted by Morris and Shin (2004) can be amplified if agents have doubts whether others take the public signal too …
Persistent link: https://www.econbiz.de/10009522297
We conduct an information-provision experiment within a large-scale household survey on public finance in France, The Netherlands and Italy. We elicit prior opinions via open-ended questions and introduce a measure of macroeconomic policy literacy. A central bank (CB) educational blogpost...
Persistent link: https://www.econbiz.de/10014319204
We examine "Forward Guidance Contracts", which make central bankers' utility contingent on the precision of interest-rate forecasts for some time. Such Forward Guidance Contracts are a exible commitment device and can improve economic performance when the economy is stuck in a liquidity trap....
Persistent link: https://www.econbiz.de/10010528970
higher payoffs in the game when the talk is one-way as the truthful reports facilitate desired coordination. …
Persistent link: https://www.econbiz.de/10011761639
Many committees - juries, political task forces, etc. - spend time gathering costly information before reaching a decision. We report results from lab experiments focused on such information-collection processes. We consider decisions governed by individuals and groups and compare how voting...
Persistent link: https://www.econbiz.de/10012697146