Communication and Monetary Policy
22 Pages Posted: 8 Mar 2003
Date Written: March 2003
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: C7, E5
Suggested Citation: Suggested Citation