Indicator Accuracy and Monetary Policy: Is Ignorance Bliss?
Nimark, Kristoffer P.
- Publisher: Stockholm: Sveriges Riksbank
E52 | Real time data | Higher order beliefs | Kalman filter | E37 | E47 | E58 | Monetary policy | Monetary policy; Information; Kalman filter; Higher order beliefs; Real time data | Information
This paper argues that assuming a common information set shared by the public and the central bank may be inappropriate when one is concerned with the value of information itself. Specifically, we argue that it may lead one to draw the conclusion that monetary policy do...