Charles Goodhart, Dimitri Tsomocos, Xuan Wang, 07 August 2020

A sizeable proportion of enterprises, especially SMEs, in receipt of financial assistance from the government will fail to repay. This column asks whether, and to what extent, it may be beneficial to apply a screening mechanism to deter those mostly likely to fail to repay from seeking financial assistance in the first place. The answer largely turns on the relative weights attached for the objectives of stabilisation as compared with allocative efficiency.

Ippei Fujiwara, Yuichiro Waki, 21 May 2016

Central banks may well possess private information about future economic conditions. This column asks whether such information should be communicated to the public. While it is crucial for the central banks to communicate their policy action plans to the private sector, guidance that helps the private sector form more accurate forecasts of future shocks can be undesirable and destabilising.

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CEPR Policy Research