Policy with Dispersed Information
---- Acknowledgements -----
For comments and useful suggestions, we thank Olivier Blanchard, William Fuchs, Ken Judd, Robert E. Lucas, Jr., Robert Shimer, Nancy Stokey, Jean Tirole, Nikola Tarashev, Harald Uhlig, Xavier Vives, Ivn Werning, and seminar participants at Chicago, MIT, Toulouse, the 2007 IESE Conference on Complementarities and Information and the 3rd CSEF-IGIER Symposium on Economics and Institutions. We are very grateful to NSF for financial support. Pavan also thanks the Department of Economics of the University of Chicago for hospitality during the last stages of the project. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.