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Information and Uncertainty in the Theory of Monetary Policy

Editor

Listed:
  • Morten Balling

Author

Listed:
  • Helmut Wagner

Abstract

Theory and practice of monetary policy have changed significantly over the past three decades. A very important part of today's monetary policy is management of the expectations of private market participants. Publishing and justifying the central bank's best forecast of inflation, output, and the instrument rate is argued to be the most effective way to manage those expectations.

Suggested Citation

  • Helmut Wagner, 2007. "Information and Uncertainty in the Theory of Monetary Policy," SUERF Studies, SUERF - The European Money and Finance Forum, number 2007/1 edited by Morten Balling, May.
    • Handle: RePEc:erf:erfstu:44
    as

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    References listed on IDEAS

    as
    1. Helmut Wagner, 1999. "Central Bank Independence and the Lessons for Transition Economies from Developed and Developing Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 41(4), pages 1-22, December.
    2. Walsh, Carl E., 2004. "Implications of a Changing Economic Structure for the Strategy of Monetary Policy," Santa Cruz Department of Economics, Working Paper Series qt84g1q1g6, Department of Economics, UC Santa Cruz.
    3. Leo Van Hove, 2004. "Electronic Purses in Euroland: Why do Penetration and Usage Rates differ?," SUERF Studies, SUERF - The European Money and Finance Forum, number 2004/4 edited by Morten Balling, May.
    4. Michael Woodford, 2005. "Central bank communication and policy effectiveness," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, issue Aug, pages 399-474.
    5. Woodford, Michael, 1990. "Learning to Believe in Sunspots," Econometrica, Econometric Society, vol. 58(2), pages 277-307, March.
    6. Walsh, Carl E., 2005. "Endogenous objectives and the evaluation of targeting rules for monetary policy," Journal of Monetary Economics, Elsevier, vol. 52(5), pages 889-911, July.
    7. Carl E. Walsh, 2003. "Implications of a changing economic structure for the strategy of monetary policy," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 297-348.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Helmut Wagner, 2010. "The causes of the recent financial crisis and the role of central banks in avoiding the next one," International Economics and Economic Policy, Springer, vol. 7(1), pages 63-82, May.

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    More about this item

    Keywords

    central banks; communication policy; institutional design; uncertainty; microfoundation;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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