EconPapers    
Economics at your fingertips  
 

Heterogeneous private sector information, central bank disclosure, and stabilization policy

Jonathan G. James () and Phillip Lawler ()
Additional contact information
Jonathan G. James: College of Business and Economics, Swansea University, Singleton Park, Swansea SA2 8PP, United Kingdom
Phillip Lawler: College of Business and Economics, Swansea University, Singleton Park, Swansea SA2 8PP, United Kingdom

Southern Economic Journal, 2015, vol. 82, issue 2, 620-634

Abstract: Conventional wisdom has it that a central bank that uses an informational advantage to undertake active policy intervention can do as well, at least so far as real outcomes are concerned, by making its information publicly available and abstaining from stabilization. This notion is examined using a framework incorporating heterogeneous private sector information concerning aggregate demand shocks. An activist regime, in which the central bank exploits its own information to engage in stabilization, is found to be unambiguously superior to a noninterventionist regime, where the central bank maintains a constant setting of policy but publicly discloses its own information.

JEL-codes: D82 E52 E58 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://dx.doi.org/10.1002/soej.12028

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sej:ancoec:v:82:2:y:2015:p:620-634

Access Statistics for this article

Southern Economic Journal is currently edited by Laura Razzolini

More articles in Southern Economic Journal from Southern Economic Association Contact information at EDIRC.
Series data maintained by Laura Razzolini ().

 
Page updated 2017-09-29
Handle: RePEc:sej:ancoec:v:82:2:y:2015:p:620-634