Central bank communication design in a Lucas-Phelps economy

• 成果类型: Article
• 署名作者: Myatt, David P.; Wallace, Chris
• 署名单位: University of London; London Business School; University of Leicester
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2014.01.003
• 发表日期: 2014
• 页码: 64-79
• 关键词: Lucas-Phelps island economies; Public and private information; Coordination in beauty-contest games; Optimal announcements; Central bank design

摘要

In a Lucas-Phelps island economy, an island has access to many informative signals about demand conditions. Each signal incorporates both public and private information: the correlation of a signal's realizations across the economy determines its publicity. If information sources differ in their publicity then price-formation and expectations-formation processes separate, causing output gaps to open. An output-stabilizing central bank prefers averagely public information, and sometimes limits the clarity of its policy announcements to achieve this. The bank's incentive to engage privately in costly information acquisition and transmission is strongest not for the most influential signals, but instead for those which drive the largest wedge between prices and expectations: signals that are far from averagely public. (C) 2014 Elsevier B.V. All rights reserved.