The implications of central bank transparency for uncertainty and disagreement

Arbeitspapier

Using survey data from 25 economies we provide evidence that greater transparency surrounding monetary policy reduces uncertainty of interest rates and inflation, primarily by reducing uncertainty that is common to agents rather than disagreement between agents. This suggests that studies that focus on disagreement as a proxy for uncertainty understate the benefits of monetary policy transparency. The adoption of inflation targets and forward guidance are both associated with lower uncertainty, although inflation targets have a stronger impact on reducing uncertainty than forward guidance. Moreover, there are diminishing benefits from ever higher levels of transparency. Taken as a whole, our results support the contention that clarity of communication is as important as the magnitude of transparency.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: KOF Working Papers ; No. 445

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Central bank transparency ; Uncertainty ; Disagreement ; Monetary policy

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Boonlert Jitmaneeroj ; Lamla, Michael J. ; Wood, Andrew
• Ereignis: Veröffentlichung
• (wer): ETH Zurich, KOF Swiss Economic Institute
• (wo): Zurich
• (wann): 2018

Weitere Informationen

• DOI: doi:10.3929/ethz-b-000305642
• Handle: http://hdl.handle.net/10419/192931
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ