One role of monetary policy is to coordinate expectations in the economy and greater transparency of monetary policy may lead to greater coordination. But if transparent

Recent trends toward greater central bank independence and the adoption of formal inflation targeting by several countries have served to emphasise the importance of communication policy. In this paper, we explore some of the economic effects of public information that arise whenever public...

FocusThe paper examines the relationship between monetary policy and market prices through the lens of central bank communication. Central bankers use forward guidance to steer market expectations of future monetary policy moves. At the same time, they rely on market prices to gauge the likely...