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Topic: Business
Number of pages / Number of words: 10 / 2525
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This includes buts goes much beyond the mere conduct of monetary policy. It is safe to assume that well informed market participants would enable, if not assure, an improved functioning of the markets, and a central bank is in the best position to provide such useful information. However, whether providing information would result in shaping and managing expectations, and if so, whether it is desirable, are difficult issues...


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However, whether providing information would result in shaping and managing expectations, and if so, whether it is desirable, are difficult issues.

The academic and policy literature on central bank communication stresses the seminal role of communication for the effectiveness of monetary policy (Bernanke 2004, Blinder 1998, Buiter 1999, Issing 2004, King 1997)...


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