Business cycle fluctuations and monetary policy under heterogeneous information

Romain Baeriswyl (), Pierrick Clerc () and Camille Cornand
Additional contact information
Romain Baeriswyl: Swiss National Bank, Boersenstrasse 15, 8001 Zurich, Switzerland
Pierrick Clerc: HEC Liège, Rue Louvrex 14, 4000 Liège, Belgien

No 2518, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: Modelling business cycle fluctuations and the non-neutrality of money is an ongoing challenge for macroeconomists. While the imperfect-information hypothesis developed by Phelps and Lucas in the 1970s had been abandoned in favour of the sticky-price hypothesis, a recent trend in the literature has put this hypothesis back on the agenda to explain business fluctuations and monetary non-neutrality. The success of this revival lies in the introduction of strategic uncertainty into a framework of heterogeneous information. The current paper presents this macroeconomic framework and provides a brief overview of recent advances in the literature.

Keywords: heterogeneous information; strategic complementarities; higher-order beliefs; coordination; beauty-contest; monetary non-neutrality; business cycle; communication policy; monetary policy (search for similar items in EconPapers)
JEL-codes: C72 D83 E12 E32 E52 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.gate.cnrs.fr/RePEc/2025/2518.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.gate.cnrs.fr:443 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Working Paper: Business cycle fluctuations and monetary policy under heterogeneous information (2025)
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:gat:wpaper:2518

Access Statistics for this paper

More papers in Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon Contact information at EDIRC.
Bibliographic data for series maintained by Nelly Wirth ( this e-mail address is bad, please contact ).