Time consistency, asymmetric information and monetary policy design: an overview

Article Abstract:

The institutional implications of several literature on the optimal institutional framework of monetary policy, in relation to the asymmetric information game theory, are examined. Earlier studies on finding reputational equilibria, the possibilities of utilizing announcements to affect expectations and the principal-agent approach to the institutional design of monetary policy were also clarified. The study concluded that institutional reforms for independent central banks with a mandate for price stability are not consistent with recommendations from the theory.

Management

---

The information content of the yield curve for monetary policy: a survey

Article Abstract:

A review of the theoretical arguments on the information content of the yield curve with respect to future inflation and real economic activity reveals that the curve has information but the information is difficult to distinguish between the effects of real interest rates and future inflation. Moreover, the study also reveals that the yield spread is a stable leading indicator for future real economic activity but is open to various interpretations.

Methods, Yield-line analysis, Yield line analysis

---

Central banking in a democratic society

Article Abstract:

An analysis of monetary policy in a low-inflation environment and in a democratic setting reveals that monetary policy is important and that strategies for opportunistic disinflation are based on poorly tested hypotheses. Moreover, the study also reveals that cautious expansionism is more preferable to opportunistic disinflation and that central banks should be accountable and sensitive to democratic processes.

Economic aspects, Democracy

Similar abstracts:

• Abstracts: Using a technology-based information management system to better serve business. Establishment of a geographic information system in a county economic development office
• Abstracts: Swedish economic performance and Swedish economic debate: a view from outside. Alarmist decisions with divergent risk information
• Abstracts: Hiring personnel in Kazakhstan: informal guide for foreign firms
• Abstracts: Coordination problems in theorizing: a reply to de Jonge. Coordination and cooperation in game theory. Conventions and institutions in coordination problems

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.