Central-bank announcements and macroeconomic stability
Languages of publication
Announcements by the central bank do not simply provide market participants with information. They also coordinate market expectations. So even announcements that seem to provide very little new information can elicit strong market reactions. Market participants uncertain about what information others have will also be uncertain whether other market participants know what they know. In a review of recent literature on global games, the paper shows how central-bank announcements may trigger or prevent speculative attacks.
Publication order reference
CEJSH db identifier