long-run target for the policy rate; and (ii) the central bank is averse to bond-market volatility. In this setting … when the central bank moves more gradually. The same desire to mitigate bond-market volatility can lead the central bank to …

long-run target for the policy rate; and (ii) the central bank is averse to bond-market volatility. In this setting … when the central bank moves more gradually. The same desire to mitigate bond-market volatility can lead the central bank to …

. Our analysis improves upon existing work by endogenising the volatility of both output and inflation. Improved … transparency most likely manifests itself in falling output volatility. -- Imperfect credibility ; asymmetric information ; signal …

In this paper we study how volatility in monetary policy affects economic performance in the presence of endogenously … would be efficient. The equilibria that we find, with volatility and asymmetry of information, are inefficient for two …

In this paper we study how volatility in monetary policy affects economic performance in the presence of endogenously … would be efficient. The equilibria that we find, with volatility and asymmetry of information, are inefficient for two …