This paper deals with theoretical and empirical dimension of publishing interest rates projections by central banks. Its first goal is to review arguments in favor of and against this decision and to illustrate the debate using experience of four central banks which publish or used to publish interest rates forecast. The second objective is to evaluate the Czech National Bank’s capability to efficiently use publishing of its interest rates forecasts to increase further its transparency, accountability and credibility. The authors argue that (i) the CNB meets all requirements needed for making its interest rate forecast public; (ii) more specifically, they do not find any evidence of significantly worse CNB’s performance in interest rates forecasting compared to other institutions; (iii) it is not clear whether the risk assessment in combination with verbal description of interest rate forecast currently used has always been sufficiently precise guidance for the market participants; (iv) after the CNB starts publishing interest rates forecasts in 2008, market expectations will probably move closer to the CNB’s view which should in turn enhance accountability and credibility of the CNB’s forecasts and improve the efficiency of its monetary policy conduct at all.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Volume (Year): 57 (2007) Issue (Month): 11-12 (December) Pages: 558-576 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
Find related papers by JEL classification: E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation