Baeriswyl, Romain; Cornand, Camille - London School of Economics (LSE) - 2006
This paper analyzes the welfare effects of economic transparency in the conduct of monetary policy. We propose a model … monetary policy and the optimal central bank's disclosure. We define transparency as an announcement by the central bank that … allows firms to identify the rationale behind the instrument. It turnsout that transparency is welfare increasing (i) when …