-Gordon-type central bank loss function that in both cases surplus liquidity limits monetary policy autonomy. In case of fixed exchange …

commoncentral bank. Modeling this as a common agency with incentivecontracts, we show that if incentives are all that matters for … the bank,the equilibrium implements a weighted average of the countries most preferred policy. We then argue that making … the bank inflationaverse and/or attentive towards the countries economicdevelopments is undesirable in this context. …

provides an overview of the ways in which central banks have been providing more information about their monetary policymaking …

policy. We study how firms form their inflation expectations using quarterly firm-level data from the Bank of Canada …

viewed as supportive of a "Fed information effect" channel of monetary policy, whereby an FOMC tightening (easing … to the same public news, and that there is little if any role for a "Fed information effect". …

ask whether an information effect, where the public attributes the policy surprise to an unobserved state of the economy … that the central bank is signaling by its policy may explain the abnormality. It turns out that many informational … on possible information effects driving longer term interest rates, there appear to be other drivers of exchange rates …