We study credible information transmission by a benevolent Central Bank. We consider two possibilities: direct … revelation through an announcement, versus indirect information transmission through monetary policy. These two ways of … transmitting information have very different consequences. Since the objectives of the Central Bank and those of individual …

This paper presents a theoretical framework analysing the signalling channel of exchange rate interventions as an … informational trigger. We develop an implicit target zone framework with learning in order to model the signalling channel. The … theoretical premise of the model is that interventions convey signals that communicate information about the exchange rate …

"information signal" that leads to fast overall adjustment of nontraded goods prices. The hypothesis is tested and not rejected at …