Vagueness, credibility, and government policy
A discussion of the reasons why it may be in a government agency's--and society's--best interest to be vague about policy objectives. Using the concept of "cheap talk," the author explains that when an agency faces a trade-off between precise and credible announcements, its best move may be to provide truthful but limited information.
Volume (Year): (1995)
Issue (Month): Q I ()
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- Matthews, Steven A. & Okuno-Fujiwara, Masahiro & Postlewaite, Andrew, 1991.
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- Crawford, Vincent P & Sobel, Joel, 1982.
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- Kenneth Spong, 1994.
"Banking regulation : its purpose, implementation, and effects,"
Federal Reserve Bank of Kansas City, number 1994bria.
- Kenneth Spong, 2000. "Banking regulation : its purposes, implementation, and effects," Monograph, Federal Reserve Bank of Kansas City, number 2000bria.
- Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
- Buser, Stephen A & Chen, Andrew H & Kane, Edward J, 1981. "Federal Deposit Insurance, Regulatory Policy, and Optimal Bank Capital," Journal of Finance, American Finance Association, vol. 36(1), pages 51-60, March.
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