Central Bank Transparency and Shocks
According to the literature, in an expectations-augmented Phillips curve model, opacity is always preferred to transparency on central bank forecasts. By modelling the private sector's behavior explicitly, we show that transparency reduces the shocks. Consequently, transparency can be preferred.
|Date of creation:||May 2010|
|Date of revision:|
|Publication status:||Published in Economics Letters, Elsevier, 2010, 107 (2), pp.158-160. <10.1016/j.econlet.2010.01.012>|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00560261|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
References listed on IDEAS
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.:
- Petra M. Geraats, 2002. "Central Bank Transparency," Economic Journal, Royal Economic Society, vol. 112(483), pages 532-565, November.
- Herrendorf, Berthold & Lockwood, Ben, 1996.
"Rogoff's Conservative Central Banker Restored,"
The Warwick Economics Research Paper Series (TWERPS)
450, University of Warwick, Department of Economics.
- repec:oup:qjecon:v:100:y:1985:i:4:p:1169-89 is not listed on IDEAS
- Herrendorf, Berthold, 1999. "Transparency, reputation, and credibility under floating and pegged exchange rates," Journal of International Economics, Elsevier, vol. 49(1), pages 31-50, October.
- Cukierman, Alex & Meltzer, Allan H, 1986. "A Theory of Ambiguity, Credibility, and Inflation under Discretion and Asymmetric Information," Econometrica, Econometric Society, vol. 54(5), pages 1099-1128, September.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00560261. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.