CFDP 1405

Communication and Monetary Policy

Author(s): 

Publication Date: March 2003

Pages: 21

Abstract: 

One role of monetary policy is to coordinate expectations in the economy and greater transparency of monetary policy may lead to greater coordination. But if transparent monetary policy helps coordinate expectations, then it must also magnify mistakes.

Keywords: 

Communication, monetary policy, transparency, common knowledge

JEL Classification Codes:  C7, E5

See CFP: 1127