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It is argued in literature that transparency may be detrimental to welfare. Morris and Shin (2002) suggest reducing the precision of public information or withholding it. The latter seems to be unrealistic. Thus, the issue is not whether central bank should disclose or not its information, but...
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This paper provides original empirical evidence on the emerging practice by central banks of communicating uncertainty in their inflation projections. We compare the effects of point and density projections in a learning-to-forecast laboratory experiment where participants' aggregated...
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the effects different communication strategies have on financial markets. It is shown that the communication strategy of … shown that communication in the form of voting records has the greatest effect on market participants' near term policy … expectations. These results support findings of the empirical literature and have strong implications for the optimal communication …
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