Monetary policy committee transparency: Measurement, determinants, and economic effects

Arbeitspapier

This paper studies monetary policy committee transparency (MPCT) based on a new index that measures central bankers' educational and professional backgrounds as disclosed through central bank websites. Based on a novel cross-sectional data set covering 75 central banks, we investigate the determinants of MPCT as well as its economic consequences. We find that past inflation, quality of institutional setup, and extent of Internet use in a country are important determinants of MPCT. MPCT has a robust and significantly negative impact on inflation variability, even after controlling for important macroeconomic variables and institutional transparency, as well as instrumenting MPCT in various ways.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: MAGKS Joint Discussion Paper Series in Economics ; No. 40-2011

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy ; Central Banks and Their Policies ; Consumer Economics: Empirical Analysis ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
• Subject: monetary policy committee ; transparency ; monetary policy transparency ; monetary policy ; central banks ; Zentralbank ; Geldpolitik ; Gruppenentscheidung ; Informationsverhalten ; Staatliche Information ; Wirkungsanalyse ; Inflation ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hayo, Bernd ; Mazhar, Ummad
• Event: Veröffentlichung
• (who): Philipps-University Marburg, Faculty of Business Administration and Economics
• (where): Marburg
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/56502
• Last update: 10.03.2025, 11:43 AM CET