Rules versus discretion in Central Bank communication

We propose a theoretical framework to study Central Bank communication and assess the benefits of commitment disclosure rule. Our model features coordination environment, where agents have dispersed private information their interests are not aligned with those Bank. Public can lead undesirable among agents. show that anything goes when cannot commit; both its most least preferred outcomes be supported in equilibrium, so between. find does necessarily implement Bank's outcome. However, avoid desirable by choosing an structure only two messages act as action recommendations for Furthermore, our results suggest higher correlation between fundamentals under commitment.