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Secrecy of Monetary Policy and the Variability of Interest Rates Author info | Abstract | Publisher info | Download info | Related research | Statistics Tabellini, Guido
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This paper addresses the issue of how secrecy of the short-run monetary policy objectives affects the behavior of the federal-funds rate. Secrecy is modeled by assuming that financial markets are unc ertain about a parameter in the Federal Reserve reaction function. Th ey learn over time about this parameter, by means of Bayes rule, and this learning process is reflected in the time path of interest rates and of reserve aggregates. The main result of the paper is that secr ecy tends to increase the volatility of the funds rate and of reserve aggregates. Copyright 1987 by Ohio State University Press.
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Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking .
Volume (Year): 19 (1987)
Issue (Month): 4 (November)
Pages: 425-36
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Handle: RePEc:mcb:jmoncb:v:19:y:1987:i:4:p:425-36Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Cyert, Richard M & DeGroot, Morris H, 1974.
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repec:fip:fedreq:y:1986:i:jan:p:11-28:n:v.72no.1 is not listed on IDEAS
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Menno Middeldorp & Clemens Kool & Stephanie Rosenkranz, 2007.
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Bernhard Winkler, 2000.
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TUYSUZ, Sukriye, 2007.
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Nathan Balke & Joseph H. Haslag, 1989.
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Joseph H. Haslag, 2001.
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Muller, P. & M. Zelmer, 1999.
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Aleksandar Murdzhev & Marc Tomljanovich, 2006.
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Andrew G Haldane, 1997.
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Eijffinger, Sylvester C W & Geraats, Petra M, 2002.
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Eijffinger, S.C.W. & Geraats, P.M., 2004.
"How Transparent Are Central Banks? ,"
Cambridge Working Papers in Economics
0411, Faculty of Economics, University of Cambridge.
[Downloadable!] Eijffinger, Sylvester C.W. & Geraats, Petra M., 2006.
"How transparent are central banks? ,"
European Journal of Political Economy ,
Elsevier, vol. 22(1), pages 1-21, March.
[Downloadable!] (restricted) Eijffinger, Sylvester C W & van der Cruijsen, Carin A B, 2007.
"The Economic Impact of Central Bank Transparency: A Survey ,"
CEPR Discussion Papers
6070, C.E.P.R. Discussion Papers.
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Other versions:
Cruijsen, C. van der & Eijffinger, S.C.W., 2007.
"The Economic Impact of Central Bank Transparency: A Survey ,"
Discussion Paper
2007-06, Tilburg University, Center for Economic Research.
[Downloadable!] Carin van der Cruijsen & Sylvester Eijffinger, 2007.
"The economic impact of central bank transparency: a survey ,"
DNB Working Papers
132, Netherlands Central Bank, Research Department.
[Downloadable!]
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