Journal Article
Vagueness, credibility, and government policy
Abstract: A discussion of the reasons why it may be in a government agency's--and society's--best interest to be vague about policy objectives. Using the concept of \"cheap talk,\" the author explains that when an agency faces a trade-off between precise and credible announcements, its best move may be to provide truthful but limited information.
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https://fraser.stlouisfed.org/title/economic-review-federal-reserve-bank-cleveland-1328/1995-quarter-1-4225?page=14
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Review
Publication Date: 1995
Issue: Q I
Pages: 13-19