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Reference: Giacomo Carboni and Martin Ellison, (2009). Inflation and output volatility under asymmetric incomplete information. European Central Bank.Citable link to this page:

 

Inflation and output volatility under asymmetric incomplete information. Series: ECB Working Paper Series

Abstract: The assumption of asymmetric and incomplete information in a standard NewKeynesian model creates strong incentives for monetary policy transparency. Weassume that the central bank has better information about its objectives than theprivate sector, and that the private sector has better information about shocks than thecentral bank. Transparency has the potential to trigger a virtuous circle in which allagents find it easier to make inferences and the economy is better stabilised. Ouranalysis improves upon existing work by endogenising the volatility of both outputand inflation. Improved transparency most likely manifests itself in falling outputvolatility.

Bibliographic Details

Issue Date: 2009-09Identifiers

Urn: uuid:28cc675a-cf95-4bd0-ae07-f7b403a3032d Item Description

Type: info:eu-repo/semantics/workingPaper;

Language: en

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Author: Giacomo Carboni - - - Martin Ellison - - - - Bibliographic Details Issue Date: 2009-09 - Identifiers Urn: uuid:28cc675a-cf95-4bd0

Source: https://ora.ox.ac.uk/objects/uuid:28cc675a-cf95-4bd0-ae07-f7b403a3032d



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