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Learning from Prices : Public Communication and Welfare
Amador, Manuel - 2008
We study the effect of releasing public information about productivity or monetary shocks when agents learn from nominal prices. While public releases have the benefit of providing new information, they can have the cost of reducing the informational efficiency of the price system. We show that,...
Persistent link: https://www.econbiz.de/10012770589
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Days of Haze : Environmental Information Disclosure and Intertemporal Avoidance Behavior
Zivin, Joshua Graff - 2014
In this paper, we investigate the dynamics of informational regulatory approaches by analyzing the impact of smog alerts issued on consecutive days on discretionary outdoor activities in Southern California. Short-run adjustments to transitory risk entail costs that are likely to influence the...
Persistent link: https://www.econbiz.de/10012751334
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The Limits of Propaganda : Evidence from Chavez's Venezuela
Knight, Brian G. - 2016
In this paper, we investigate viewer responses to changes in the ideological content of television programming using variation induced by cadenas, unannounced takeovers of the public television airwaves by the government in Venezuela. Using high-frequency ratings data, we find that, consistent...
Persistent link: https://www.econbiz.de/10012997369
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Using Models to Persuade
Schwartzstein, Joshua - 2019
We present a framework for analyzing “model persuasion.” Persuaders influence receivers' beliefs by proposing models (likelihood functions) that specify how to organize past data (e.g., on investment performance) to make predictions (e.g., about future returns). Receivers are assumed to find...
Persistent link: https://www.econbiz.de/10012865757
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Inflation Announcements and Social Dynamics
Hachem, Kinda - 2014
We propose a new framework for understanding the effectiveness of central bank announcements when firms have heterogeneous inflation expectations. Expectations are updated through social dynamics and, with heterogeneity, not all firms choose to operate, putting downward pressure on realized...
Persistent link: https://www.econbiz.de/10013053470
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Has the Financial Crisis Permanently Changed the Practice of Monetary Policy? Has it Changed the Theory of Monetary Policy?
Friedman, Benjamin M. - 2014
, there is a conceptual component to all this as well. In contrast to the last century or more of monetary theory, which has … the asset side of the central bank's balance sheet. The implications for monetary theory are profound …
Persistent link: https://www.econbiz.de/10013053846
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Gradualism in Monetary Policy : A Time-Consistency Problem?
Stein, Jeremy C.; Sunderam, Aditya - 2021
We develop a model of monetary policy with two key features: (i) the central bank has private information about its long-run target for the policy rate; and (ii) the central bank is averse to bond-market volatility. In this setting, discretionary monetary policy is gradualist, or inertial, in the...
Persistent link: https://www.econbiz.de/10013224344
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Forward Guidance Without Common Knowledge
Angeletos, George-Marios - 2016
How does the economy respond to news about future policies or future fundamentals? Standard practice assumes that agents have common knowledge of such news and face no uncertainty about how others will respond. Relaxing this assumption attenuates the general-equilibrium effects of news and...
Persistent link: https://www.econbiz.de/10012980185
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The Power of Forward Guidance Revisited
McKay, Alisdair - 2015
In recent years, central banks have increasingly turned to “forward guidance” as a central tool of monetary policy, especially as interest rates around the world have hit the zero lower bound. Standard monetary models imply that far future forward guidance is extremely powerful: promises...
Persistent link: https://www.econbiz.de/10013029553
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Transition to FDI Openness : Reconciling Theory and Evidence
McGrattan, Ellen R. - 2011
conclusive evidence that they are positive, as theory predicts. This paper shows that the lack of empirical evidence is … consistent with theory if countries are in transition to FDI openness. Anticipated welfare gains lead to temporary declines in … reconciliation of theory and evidence is accomplished with a multicountry dynamic general equilibrium model parameterized with data …
Persistent link: https://www.econbiz.de/10013130264