Faculty News
As a featured guest, Professor Kim Schoenholtz explains why central banks must communicate and discusses the importance of transparency
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Excerpt from Bloomberg -- "I think the transparency is a big plus. Think of it this way, by being transparent they condition us to anticipate their behavior. We know the things that drive them, whether it's strong growth or rising inflation, we know what changes their policy, we know that when they're running a very accommodating policy, they are going to be uncomfortable with it if the economy is already doing well, they are going to want to get back to something like normal. Because we know that, we can anticipate it and it shows up in market prices long before they act."
Listen here (Prof. Schoenholtz is at 8:20)
Listen here (Prof. Schoenholtz is at 8:20)