@article {29950,
	title = {The Information Content of the Interest Rate and Optimal Monetary Policy},
	journal = {Quarterly Journal of Economics},
	volume = {98},
	year = {1983},
	note = {{\textcopyright} 1983 by the President and Fellows of Harvard College. Posted by permission of the MIT Press. One copy may be printed for individual use only.},
	pages = {545-566},
	abstract = {Optimal monetary policy rules are derived in a rational expectations cum contracting framework. Monetary policy is redundant if wage setters exploit the incomplete current information embodied in today{\textquoteright}s nominal interest rate. However, the monetary authorities can save wage setters the costs of "indexing" to the interest rate. A contemporaneous money supply feedback rule is as effective as wage indexation. A lagged rule, relevant under a regime of money supply targeting, is also as effective if investors use the interest rate. Both rules have the same implications for the real interest rate as Poole{\textquoteright}s combination policy. However, the two rules have strikingly different implications for the nominal interest rate.},
	author = {Matthew Canzoneri and Dale Henderson and Kenneth Rogoff}
}
