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Survey of Models and Indicators of Transparency

  • Bernard J. Laurens
  • Marco Arnone
  • Jean-François Segalotto
Chapter
  • 73 Downloads
Part of the Procyclicality of Financial Systems in Asia book series (IMF)

Abstract

The importance of monetary policy transparency is now largely taken for granted – a far cry from Alan Greenspan’s reported remark after his appointment as Chairman of the Federal Reserve Board in 1988: “I guess I should warn you, if I turn out to be particularly clear, you have probably misunderstood what I said.” CBs around the world now wrestle with how to achieve better, rather than just more, transparency. This chapter investigates the long path followed by CBs, practitioners, and academics away from a position of opaque talk, towards transparency in monetary policy. The broad consensus that transparency is an integral part of a sound governance framework for CBs reflects the understanding that the success of monetary policy also depends on how the CB communicates its objectives, adopted measures, and achieved results to the public. Accurate and frequent communication is expected to enhance CBs’ credibility and the confidence of the private sector over time. Hence, transparency is a necessary complement to independence.

Keywords

Monetary Policy Central Bank Economic Forecast Central Bank Independence Inflation Forecast 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© International Monetary Fund 2009

Authors and Affiliations

  • Bernard J. Laurens
    • 1
  • Marco Arnone
    • 2
    • 3
  • Jean-François Segalotto
    • 2
  1. 1.Monetary and Capital Markets DepartmentInternational Monetary FundUSA
  2. 2.The Centre for Macroeconomics & Finance Research (CeMaFiR)Italy
  3. 3.University of Eastern PiedmontItaly

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