Transparency of Monetary Policy: Theory and Practice

By P. Geraats. Social Science Research Network, 2006

134 citations recorded by the source corpus.

Transparency has become one of the main features of monetary policymaking during the last decade. This article establishes stylized facts and provides a systematic overview of the practice of monetary policy transparency around the world. It shows much diversity in information disclosure, even for central banks with the same monetary policy framework, including inflation targeting. Nevertheless, the study finds significant differences in transparency across monetary policy frameworks. The empirical findings are explained using key insights distilled from the theoretical literature. Thus, this article aims to bridge the gap between the theory and practice of monetary policy transparency. (JEL codes: E58, D82) Copyright 2006, Oxford University Press.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/6c678343374d4adcfa494b58dc0c388fa284931f

Citations in the corpus

• Trends in Monetary Policy Transparency (2009, unknown): “In general, transparency can have two types of effects, information and incentive effects ( Geraats (2002, 2006) ).”
• The information content of central bank minutes (2012, unknown): “A related reason for why the voting record might not be the most appropriate representation of the policy inclination, pointed out by Geraats (2006), has to do with the fact that policy rates tend to be adjusted in discrete steps, typically 0.”
• Central Bank Independence and Transparency: Evolution and Effectiveness (2008, unknown): “This taxonomy has become the benchmark for analyzing central bank transparency (see Eijffinger and Geraats, 2006, and Dincer and Eichengreen, 2007), and we also adopt it in computing our transparency index.13 We note, however, that there is no consensus view regarding the precise definition of…”