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Using survey data from 25 economies we provide evidence that greater transparency surrounding monetary policy reduces uncertainty of interest rates and inflation, primarily by reducing uncertainty that is common to agents rather than disagreement between agents. This suggests that studies that...
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Theory and practice of monetary policy have changed significantly over the past three decades. A very important part of … today's monetary policy is management of the expectations of private market participants. Publishing and justifying the … those expectations. The author works out the foundations of this new consensus view, compares the communication policies of …
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This paper investigates the impact of ECB communication of its assessment of the economic outlook on ex-ante inflation uncertainty and sheds light on how central bank information shocks operate. The paper finds that ECB communication of new outlook information not only reduces professional...
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bank precommits by setting the policy instrument, and the subsequent adjustment of inflation expectations is part of the …
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