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Learning from Prices : Public Communication and Welfare

Amador, Manuel - 2008

We study the effect of releasing public information about productivity or monetary shocks when agents learn from nominal prices. While public releases have the benefit of providing new information, they can have the cost of reducing the informational efficiency of the price system. We show that,...

Persistent link: https://www.econbiz.de/10012770589

Forward Guidance Without Common Knowledge

Angeletos, George-Marios - 2016

How does the economy respond to news about future policies or future fundamentals? Standard practice assumes that agents have common knowledge of such news and face no uncertainty about how others will respond. Relaxing this assumption attenuates the general-equilibrium effects of news and...

Persistent link: https://www.econbiz.de/10012980185

The Power of Forward Guidance Revisited

McKay, Alisdair - 2015

In recent years, central banks have increasingly turned to “forward guidance” as a central tool of monetary policy, especially as interest rates around the world have hit the zero lower bound. Standard monetary models imply that far future forward guidance is extremely powerful: promises...

Persistent link: https://www.econbiz.de/10013029553

Central Bank Communication and Expectations Stabilization

Eusepi, Stefano - 2010

This paper analyzes the value of communication in the implementation of monetary policy. The central bank is uncertain about the current state of the economy. Households and firms are uncertain about the statistical properties of aggregate variables, including nominal interest rates, and must...

Persistent link: https://www.econbiz.de/10012759936

Sticky Information : A Model of Monetary Nonneutrality and Structural Slumps

Mankiw, Nicholas Gregory; Reis, Ricardo - 2021

This paper explores a model of wage adjustment based on the assumption that information disseminates slowly throughout the population of wage setters. This informational frictional yields interesting and plausible dynamics for employment and inflation in response to exogenous movements in...

Persistent link: https://www.econbiz.de/10013219284

Monetary Policy in the Information Economy

Woodford, Michael - 2021

This paper considers two challenges that improvements in private-sector information-processing capabilities may pose for the effectiveness of monetary policy. It first considers the consequences of improved information about central-bank actions, and argues that the management of expectations...

Persistent link: https://www.econbiz.de/10013240308

Sticky Information Versus Sticky Prices : A Proposal to Replace the New Keynesian Phillips Curve

Mankiw, Nicholas Gregory; Reis, Ricardo - 2021

This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly throughout the population. Compared to the commonly used sticky-price model, this sticky-information model displays three, related properties that are more consistent with...

Persistent link: https://www.econbiz.de/10013245304

Forward Guidance

Svensson, Lars E. O. - 2014

Forward guidance about future policy settings, in the form of a published policy-rate path, has for many years been a natural part of normal monetary policy for several central banks, including the Reserve Bank of New Zealand and the Swedish Riksbank. More recently, the Federal Reserve has...

Persistent link: https://www.econbiz.de/10013039629

Non-Monetary News in Central Bank Communication

Cieslak, Anna - 2018

We quantify the importance of non-monetary news in central bank communication. Using evidence from four major central banks and a comprehensive classification of events, we decompose news conveyed by central banks into news about monetary policy, economic growth, and separately, shocks to risk...

Persistent link: https://www.econbiz.de/10012911101

Central Bank Transparency : Causes, Consequences and Updates

Dinçer, Nazire Nergiz; Eichengreen, Barry - 2021

determinants and consequences of monetary policy transparency in an integrated econometric framework. We establish that there has … been significant movement in the direction of greater central bank transparency in recent years. Transparent monetary … democracies, with their culture of transparency. Using these political determinants as instruments for transparency, we show that …

Persistent link: https://www.econbiz.de/10013225595