Monetary Policy with Internal Central Bank Forecasting: A Case of Heterogenous Information

Kaushik Mitra () and Seppo Mikko Sakari Honkapohja ()

No 04/16, Royal Holloway, University of London: Discussion Papers in Economics from Department of Economics, Royal Holloway University of London

Abstract: Honkapohja and Mitra (2003) have analyzed the desirability of optimal and ad hoc interest rules in monetary policy when the forecasts of the private sector and the central bank are heterogenous but information is symmetric. Here we analyze the case of asymmetric information in which one party does not observe all observable shocks that the other party sees.

Keywords: Adaptive learning; stability; heterogeneity; asymmetric information; monetary policy. (search for similar items in EconPapers)
JEL-codes: E52 E31 D84 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
Date: Written 2004-07
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