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The link between transparency and independence of central banks

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  • Eleftherios Spyromitros

Abstract

This paper, using a standard model of monetary delegation, highlights the relationship between transparency and conservativeness of central banks. Precisely, we show that a lack of transparency about the output objective of central banks positively affects the optimal degree of conservativeness of the central bank. Empirical analysis confirms the theoretical link highlighted in this study.

Suggested Citation

  • Eleftherios Spyromitros, 2014. "The link between transparency and independence of central banks," Journal of Risk & Control, SCIENPRESS Ltd, vol. 1(1).
    • Handle: RePEc:spt:rmkjrc:v:1:y:2014:i:1:f:
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