New economic research suggests less can be more in Federal Reserve announcements.
With Federal Reserve communications, it seems intuitive that clearer, more precise information is always better—especially when dealing with money. But Wake Forest University economists Aeimit Lakdawala and Jinyoung Seo, together with Myungkyu Shim of Yonsei University, show that this is not always the case. The team’s new working paper, “On the Optimal Precision of Central…
Categories: Research & Discovery