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Svensson (2006) argues that Morris and Shin (2002) is, contrary to what is claimed, pro-transparency. This paper re-examines the issue but with an important modification to the original Morris and Shin framework. Recognizing that central banks impact on the economy not only indirectly via public...
Persistent link: https://www.econbiz.de/10013026992
Financial markets and macroeconomic environments are often characterized by positive externalities. In these environments, transparency may reduce expected welfare from an ex-ante point of view: public announcements serve as a focal point for higher-order beliefs and affect agents' behaviour...
Persistent link: https://www.econbiz.de/10010366530
We develop a dynamic two-period generalized beauty contest to study the optimal level of publicity when disclosed information is subject to multiplier effects inherent to social learning. We build upon the static case, where all agents receive a private signal about an unknown fundamental state...
Persistent link: https://www.econbiz.de/10011373562
We develop a dynamic two-period generalized beauty contest to study the optimal level of publicity when disclosed information is subject to multipliereffects inherent to social learning. We build upon the static case, where all agents receive a private signal about an unknown fundamental state...
Persistent link: https://www.econbiz.de/10011349468
We develop a two-period generalized beauty contest to study the optimal level of publicity when disclosed information is subject to multiplier effects. We build upon the static case, where all agents receive a private signal about an unknown fundamental state and only a fraction of all agents...
Persistent link: https://www.econbiz.de/10011459944
We study the general problem of information design for a policymaker—a central bank—that communicates its private information (the ``state") to the public. We show that it is optimal for the policymaker to partition the state space into a finite number of ``clusters” and to communicate to...
Persistent link: https://www.econbiz.de/10012181571
Persistent link: https://www.econbiz.de/10000849012
This paper studies monetary policy under discretion when the central bank ex ante determines information to be acquired and made public. In a general setting, wherein a monetary instrument signals the central bank's private information, I show that an optimal information policy comprises the...
Persistent link: https://www.econbiz.de/10013026571
In this paper we examine whether publishing the information underlying the central bank's decisions is socially desirable. We show that opacity may lead to the same equilibrium as transparency. However, additional equilibria may emerge under opacity with adverse consequences for welfare....
Persistent link: https://www.econbiz.de/10013147417
that the destabilizing effect of public information is less pronounced experimentally than when it does in theory. This is …
Persistent link: https://www.econbiz.de/10013061847