Arbeitspapier
Communication, decision-making and the optimal degree of transparency of monetary policy committees
This paper develops a theoretical model of dynamic decision-making of a monetary policy committee with heterogeneous members. It investigates the optimal transparency, and the optimal way of transmitting information of committees, by analysing the effects different communication strategies have on financial markets. It is shown that the communication strategy of the central bank committee has a significant effect on the predictability of monetary policy decisions when there is asymmetric information between the committee and market agents. Transparency about the diversity of views of the committee surrounding the economic outlook makes future monetary policy more predictable. However, communicating the diversity of views regarding monetary policy decisions may lead to less predictability of monetary policy in the short term. In addition, it is shown that communication in the form of voting records has the greatest effect on market participants' near term policy expectations. These results support findings of the empirical literature and have strong implications for the optimal communication strategies of committees including the question whether individual voting records should be published.
- Sprache
-
Englisch
- Erschienen in
-
Series: Discussion Paper Series 1 ; No. 2008,02
- Klassifikation
-
Wirtschaft
Monetary Policy
Monetary Policy, Central Banking, and the Supply of Money and Credit: General
Central Banks and Their Policies
- Thema
-
Monetary Policy Committees
Uncertainty
Communication
Transparency
Geldpolitik
Gruppenentscheidung
Staatliche Information
Informationsökonomik
Wirtschaftspolitische Wirkungsanalyse
Finanzmarkt
Zinsstruktur
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Weber, Anke
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsche Bundesbank
- (wo)
-
Frankfurt a. M.
- (wann)
-
2008
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Weber, Anke
- Deutsche Bundesbank
Entstanden
- 2008
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