Central Bank accountability and transparency: theory and some evidence

Sylvester Eijffinger and Marco Hoeberichts ()

No 2000,06, Discussion Paper Series 1: Economic Studies from Deutsche Bundesbank

Abstract: The first part of this paper outlines the concept of democratic accountability of central banks, and compares the legal accountability of the ECB with some other central banks (Bank of Canada, Bank of Japan, Bank of England and the Federal Reserve System). In the second part, we present a theory of central bank accountability. Two aspects of accountability are considered: transparency of actual monetary policy and the question of who bears final responsibility for monetary policy. The paper shows that accountability through transparency leads to a lower expected rate of inflation and less stabilization of supply shocks. Accountability through shifting final responsibility in the direction of the government leads to higher inflationary expectations and more stabilization of supply shocks.

Keywords: monetary policy; central banks; transparency; accountability (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Central Bank Accountability and Transparency: Theory and Some Evidence (2002)
Working Paper: Central Bank Accountability and Transparency: Theory and Some Evidence (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdp1:4142

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