Imperfect Central Bank Communication : Information versus Distraction /

Much of the information communicated by central banks is noisy or imperfect. This paper considers the potential benefits and limitations of central bank communications in a model of imperfect knowledge and learning. It is shown that the value of communicating imperfect information is ambiguous. Ther...

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Dettagli Bibliografici
Autore principale: Orphanides, Athanasios
Altri autori: Dale, Spencer, Osterholm, Par
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 2008.
Serie:IMF Working Papers; Working Paper ; No. 2008/060
Accesso online:Full text available on IMF
Descrizione
Riassunto:Much of the information communicated by central banks is noisy or imperfect. This paper considers the potential benefits and limitations of central bank communications in a model of imperfect knowledge and learning. It is shown that the value of communicating imperfect information is ambiguous. There is a risk that the central bank can distract the public; this means that the central bank may prefer to focus its communication policies on the information it knows most about. Indeed, conveying more certain information may improve the public's understanding to the extent that it "crowds out" a role for communicating imperfect information.
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Descrizione fisica:1 online resource (31 pages)
Natura:Mode of access: Internet
ISSN:1018-5941
Accesso:Electronic access restricted to authorized BRAC University faculty, staff and students