Which kind of transparency? On the need for clarity in monetary policy-making

Bernhard Winkler

No 26, Working Paper Series from European Central Bank

Abstract: In most of the existing academic literature the notion of transparency in monetary policy is defined in too simple terms to be of practical relevance. This paper suggests a conceptual framework, which distinguishes different - and potentially conflicting - aspects of transparency. When there are frictions in communication or imperfections in the processing of information, greater 'openness' (i.e. more information) need not always enhance the 'clarity' of central bank communication. In this perspective transparency primarily hinges on a shared mode of interpretation ('common understanding') between the central bank and its audience. JEL Classification: E42, E52, E58

Keywords: communication; monetray policy strategy; transparency (search for similar items in EconPapers)
Date: 2000-08
Note: 334656
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (79)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:200026

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