Volatile policy and private information: The case of monetary shocks

• 成果类型: Article
• 署名作者: Jones, LE; Manuelli, RE
• 署名单位: University of Wisconsin System; University of Wisconsin Madison; National Bureau of Economic Research; University of Minnesota System; University of Minnesota Twin Cities
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1006/jeth.2000.2729
• 发表日期: 2001
• 页码: 265-296
• 关键词: volatility; asymmetric information; monetary policy

摘要

We study how volatility in monetary policy affects economic performance in the presence of asymmetric information and endogenously chosen information structures. We consider a model in which in the absence of either feature the equilibria would be efficient. The equilibria that we find are inefficient for two reasons: first, in some cases, agents fail to trade, even though it is efficient to do so; second, agents spend resources acquiring socially useless information. The model predicts a nonlinear relationship between inflation and output and a complex pattern of price dispersion, with the nature of the relationship changing with the degree of volatility. (C) 2001 Academic Press.