We investigate the role of economic transparency within the framework of one of Townsend's models of 'forecasting the forecasts of others.' The equilibrium has the property that 'higher order beliefs' are coordinated into a finite-dimensional setup that is amenable to address monetary policy...

We provide a general characterization of the structure of rational expectations equilibria of any degree of revelation for pure exchange, sequential economies, with deffinitely many states of private information, an incomplete financial market and nominal assets. We estimate the dimension of the...

This paper considers the role of foreign investors in developed-country equity markets. It presents a quantitative model of trading that is built around two new assumptions: (i) both the foreign and domestic investor populations contain investors of different sophistication, and (ii) investor...