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The causal effects of central bank communication on economic expectations and their underlying mechanisms are tested in … controlled laboratory experiments. We find that central bank communication has a stabilizing effect on individual and aggregate … outcomes, and the size of the effect varies with the type of communication. Announcing past interest rate changes has the …
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as a coordination device. Overall, our results suggest that communicating uncertainty through density projections reduces …
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may lead to greater coordination. But if transparent monetary policy helps coordinate expectations, then it must also …
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coordination, the number of signals they acquire may decrease in the number released. The optimal quantity of communication is … useful information and the risk of overwhelming it with excessive communication. An information authority chooses how many …
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