Central Bank Transparency in Theory and Practice

Maria Demertzis and A. Hughes Hallet
Authors registered in the RePEc Author Service: Andrew Hughes Hallett ()

WO Research Memoranda (discontinued) from Netherlands Central Bank, Research Department

Abstract: We study the effects of Central Bank transparency on inflation and the output gap. We thus identify a small analytical model which concludes that transparency affects the variability of inflation and output and not their average levels. Then we examine whether this conjecture holds empirically, employing the recently derived index of transparency by Eijffinger and Geraats. The empirical findings confirm that the averages are not affected by transparency. It does seem to explain however, about 50% of the variability in inflation. The relation between transparency and output volatility is less clear but appears to be positive rather than negative.

Keywords: Central Bank; Economic and Political Transparency; Inflation and Output Gap Performance (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mon
Date: 2002
View list of references View citations in EconPapers

Downloads: (external link)
http://www.dnb.nl/binaries/wo0704_tcm46-145998.pdf (application/pdf)

Related works:
Working Paper: Central Bank Transparency in Theory and Practice (2003)
Working Paper: Central bank transparency in theory and practice (2004)
Working Paper: Central Bank Transparency in Theory and Practice (2003)
Working Paper: Central Bank Transparency in Theory and Practice (2002)
Journal Article: Central Bank transparency in theory and practice (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:dnb:wormem:704

Access Statistics for this paper

More papers in WO Research Memoranda (discontinued) from Netherlands Central Bank, Research Department
Contact information at EDIRC.
Series data maintained by Arjen Siegmann ().