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 develop a dynamic model of corporate investment and financing decisions in which corporate insiders have superior information about the firm's growth prospects. We show that firms with positive private information can credibly signal their type to outside investors using the timing of...