Frankel, Alex; Kartik, Navin - In: Theoretical economics : TE ; an open access journal in … 13 (2018) 2, pp. 697-727
How much information should a central bank (CB) have about (i) policy objectives and (ii) operational shocks to the … inflation-biased CB's private information on both these dimensions. We find that greater CB competence—more private information … information about operational shocks, the public infers that monetary policy depends more on the CB's information about objectives …