Which Kind of Transparency? On the Need for Clarity in Monetary Policy-Making

By B. Winkler. Social Science Research Network, 2000

270 citations recorded by the source corpus.

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, F58

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/7bb2c370aa72fff6ac0c9a8b7b566cde49b02d16

Citations in the corpus

• Are Contemporary Central Banks Transparent About Economic Models and Objectives and What Difference Does it Make? (2002, unknown): “A fuller discussion of those and related issues appears in Winkler (2000). forward looking in that current pricing decisions depend on expected future inflation rather than on past pricing decisions.10”
• Anticipations of Monetary Policy in Financial Markets (2001, unknown): “Winkler (2000) argues that besides openness (which relates to the”
• Does it Pay to be Transparent? International Evidence from Central Bank Forecasts (2002, unknown): “Winkler (2000) discusses issues related to the definition of transparency.”
• Central Bank Transparency (2002, unknown): “This is further discussed in the context of monetary policy by Winkler (2000), who proposes to view transparency in terms of openness, clarity, honesty and common understanding.”
• Transparenting Transparency: Intial Empirics and Policy Applications (2005, unknown): “Rather than whether transparency is desirable or not, the debate has shifted to how financial institutions can achieve better transparency (Winkler, 2000; Camilleri, 2005).”
• Communication and Monetary Policy (2002, unknown): “Geraats (2002), Winkler (2000) and Jensen (2002) are some recent discussions that attempt to classify the various dimensions of the problem.”
• The Limits of Transparency (2011, unknown): “15 An enlightening discussion along those lines appears in Winkler (2000).”
• The ethics of information transparency (2009, unknown): “Winkler (2000) analyses the role of (information) transparency in monetary policymaking.”
• Optimal Degree of Public Information Dissemination (2006, unknown): “Following Winkler (2000), the main drawback of this strand of literature is to underestimate the impact of informational policy on higher-order beliefs.”