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Transparency and Reputation: The Publication of Central Bank Forecasts Author info | Abstract | Publisher info | Download info | Related research | Statistics Petra Geraats (University of Cambridge)
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Transparency has become one of the key features of monetary policy. This paper analyzes the reputational incentives related to transparency, focusing on the publication of central bank forecasts. A simple dynamic monetary policy game shows how transparency reduces inflation, as has been found empirically. Furthermore, the endogenous choice of transparency is analyzed. Although transparency exposes weak central banks, the negative market feedback in response to secrecy could provide a sufficiently strong inducement to become transparent. Thus, reputational concerns could lead to transparency, even without formal disclosure requirements.
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Article provided by Berkeley Electronic Press in its journal Topics in Macroeconomics .
Volume (Year): 5 (2005)
Issue (Month): 1 ()
Pages: 1277-1277
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Keywords: Transparency monetary policy central bank forecasts Other versions of this item:
Find related papers by JEL classification: D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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