Communication and Monetary PolicyBank for International Settlements, Monetary and Economic Department, 2003 - Decision making - 22 pages 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 information serves the dual role of conveying fundamental information as well as serving as a focal point for better coordination. More precise public information is a double-edged tool. While it is very effective in influencing actions through coordination, sometimes it can be too effective, and coordinate actions away from fundamentals. |
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Adopting Inflation Target American Economic Review Bank for International Bank runs bank’s own assessment benefit Blinder central bank’s views coordinating role Corrinne Credit risk ECB’s economic agents effective in influencing emerging market countries European Central Bank Federal Reserve figures financial markets find firms formal inflation targeting fundamental variable future stance Gabriele Galati given weight greater transparency Hyun Song Shin increased precision individual agents influencing the actions information available International Settlements issues iterated expectations Jeffery D Amato Lucas market expectations market participants money supply monthly Morris and Shin noise nomic normally distributed numerical outcome overnight rate paper Philip Lowe policy rates policymakers precision of public price deviation price on island prices set private and public private information private signal procyclicality public information public signal quantified rational expectations reflect residents of island role of monetary September 2002 signal is given signalling role Stephen Morris underlying fundamentals United Kingdom Woodford
Bibliographic information
| Title | Communication and Monetary Policy Issue 123 of BIS working papers, Bank für Internationalen Zahlungsausgleich Basel Volume 123 of BIS working papers: Bank für Internationalen Zahlungsausgleich Issue 1405 of Cowles Foundation discussion paper Volume 1405 of Cowles Foundation discussion paper: Cowles Foundation for Research in Economics |
| Authors | Jeffery D. Amato, Stephen Morris, Hyun Song Shin |
| Contributor | Bank for International Settlements. Monetary and Economic Department |
| Publisher | Bank for International Settlements, Monetary and Economic Department, 2003 |
| Original from | Indiana University |
| Digitized | Aug 8, 2011 |
| Length | 22 pages |
| Export Citation | BiBTeX EndNote RefMan |