IDEAS home Printed from https://ideas.repec.org/p/zbw/bubdp1/4143.html
   My bibliography  Save this paper

Welfare effects of public information

Author

Listed:
  • Shin, Hyun Song
  • Morris, Stephen

Abstract

What are the welfare effects of enhanced disclosures of public information – Is it always the case, that frequent and timely publication of economic statistics by government agencies and the central bank are desirable – This question has become one of several interlinked strands of debate on the desirability of transparency in hte conduct of monetary policy. Here we put to the test the presumption that greater disclosures of public information is always welfare enhancing. We examine the impact of public information in a setting where a principal provides public information to private sector agents. The principal's interest is in inducing the agents to take actions that are appropriate to the fundamentals. The agents, too, are motivated to take actions appropriate to the underlying state, but they also have a coordination motive arising from a strategic complementarity in their actions. When there is perfect information concerning the underlying state, there is no conflict of interest between the principal and the agents. However, when there is imperfect information, the welfare effects of increased public disclosures is more equivocal.

Suggested Citation

  • Shin, Hyun Song & Morris, Stephen, 2000. "Welfare effects of public information," Discussion Paper Series 1: Economic Studies 2000,07, Deutsche Bundesbank.
  • Handle: RePEc:zbw:bubdp1:4143
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/19535/1/200007dkp.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Georgios Chortareas & David Stasavage & Gabriel Sterne, 2002. "Does it pay to be transparent? international evidence form central bank forecasts," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 99-118.
    2. Christina E. Metz, 2002. "Private and Public Information in Self-fulfilling Currency Crises," Journal of Economics, Springer, vol. 76(1), pages 65-85, May.
    3. Jose M P Jorge, 2007. "Financial System Architecture: The Role of Systemic Risk, Added Value and Liquidity," Money Macro and Finance (MMF) Research Group Conference 2006 155, Money Macro and Finance Research Group.
    4. Jean-Charles Rochet & Xavier Vives, 2004. "Coordination Failures and the Lender of Last Resort: Was Bagehot Right After All?," Journal of the European Economic Association, MIT Press, vol. 2(6), pages 1116-1147, December.
    5. Stephen Morris & Hyun Song Shin, 2001. "The CNBC Effect: Welfare Effects of Public Information," Cowles Foundation Discussion Papers 1312, Cowles Foundation for Research in Economics, Yale University.
    6. Helder Ferreira de Mendonça & José Simão Filho, 2011. "Central Bank Transparency and Financial Market: Evidence for the Brazilian Case," Brazilian Review of Finance, Brazilian Society of Finance, vol. 9(1), pages 51-67.
    7. Stephen Morris & Hyun Song Shin, 2003. "Heterogeneity and Uniqueness in Interaction Games," Cowles Foundation Discussion Papers 1402, Cowles Foundation for Research in Economics, Yale University.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:bubdp1:4143. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/dbbgvde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.