This paper qualifies K. Rogoff's (1985) famous result that international monetary policy cooperation is counterproductive. In a model similar to his, it is shown that if wage-setters are nonatomistic and inflation averse--as policymakers are--cooperation leads to higher employment and possibly...

According to most academics and policymakers, transparency in monetary policymaking is desirable. I examine this proposition in a small theoretical model emphasizing forward-looking private sector behavior. Transparency makes it easier for price setters to infer the central bank's future policy...