Interest Rate Signals and Central Bank Transparency
Pierre Gosselin, Aileen Lotz and Charles Wyplosz ()
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Pierre Gosselin, Aileen Lotz and Charles Wyplosz: IUHEI, The Graduate Institute of International Studies, Geneva
Authors registered in the RePEc Author Service: Aïleen Lotz (),
Pierre Gosselin () and
Charles Wyplosz ()
No 19-2007, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies
The present paper extends the literature on central bank transparency that relies on information heterogeneity among private agents in four directions. First, it adds the interest rate to the list of signals that the central bank can reveal. Second, it allows for more than one economic fundamental. Third, it extends the range of uncertainties that matter. So far the literature has focused on uncertainty about the economic fundamentals, assumed to be estimated with known precision; we also allow for uncertainty about precision. Fourth, it derives results that are general in the sense that they do not depend on any particular social welfare criterion. Each extension sheds new light on the role of central bank transparency.
Keywords: central bank transparency; monetary policy; information asymmetry (search for similar items in EconPapers)
JEL-codes: E42 E52 E58 (search for similar items in EconPapers)
Date: 2007-08-24, Revised 2007-08
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Forthcoming in NBER European Macroeconomic Annual.
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Chapter: Interest Rate Signals and Central Bank Transparency (2009)
Working Paper: Interest Rate Signals and Central Bank Transparency (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:gii:giihei:heiwp19-2007
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