Social Value of Information and Optimal Communication Policy of Central Banks

• Main Authors: Jalali Naini , Ahmad-Reza, Naderian , Mohammad-Amin
• Format: Article in Journal/Newspaper
• Language: unknown
• Subjects: Lucas Island
• Online Access: http://jme.mbri.ac.ir/article-1-184-en.pdf; http://jme.mbri.ac.ir/article-1-184-en.html

Monetary policy as a tool for expectations management is believed to be most effective if it can coordinate the beliefs and expectations of the economic agents. The optimal communication policy is in an environment where central bank announcements are common knowledge and abundant information is com...