asymmetries by simply publishing information. This raises the question of the socially optimal degree of transparency in monetary …, we also examine the question of whether the transparency of the central bank's objectives is desirable from a social … asymmetries by simply publishing information. This raises the question of the socially optimal degree of transparency in monetary …

desirable. We show that opacity may lead to the same equilibrium as transparency. However, additional equilibria may emerge … and its effects on inflation and output. In this case, transparency has ambiguous effects. It reduces output variance and … the distortions stemming from heterogeneous information. However, transparency generally raises the variance of inflation …

output above its long-run level. Transparency of central banks about economic shocks has ambiguous e ects on welfare. If an … extreme level of opacity is feasible, it represents the social optimum. Otherwise full transparency may be a second …

signaling incentives under opacity. Our model may also explain the recent trend towards more transparency in monetary policy. …