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Monetary Policy Transparency in Inflation Targeting Countries: the Czech Republic, Hungary and Poland

Author

Listed:
  • Mariusz Jarmuzek
  • Lucjan T. Orlowski
  • Artur Radziwill

Abstract

This paper quantifies transparency of monetary policy in the three EU New Member States that have adopted direct inflation targeting strategy. Two measures of transparency are applied. The institutional measure reflects the extent to which a central bank discloses information that is related to the policymaking process. The behavioural measure reflects the clarity among the financial market participants about the true course of monetary policy. The paper shows an ambiguous association between the two measures of transparency, which may be attributed to the active exchange rate management policy that undermines the actual transparency proxied by the behavioural measure.

Suggested Citation

  • Mariusz Jarmuzek & Lucjan T. Orlowski & Artur Radziwill, 2004. "Monetary Policy Transparency in Inflation Targeting Countries: the Czech Republic, Hungary and Poland," CASE Network Studies and Analyses 0281, CASE-Center for Social and Economic Research.
  • Handle: RePEc:sec:cnstan:0281
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    File URL: http://www.case-research.eu/upload/publikacja_plik/2990223_SA%20281%202004%2006%2030%20ok.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Kateøina Šmídková & Aleš Bulíø, 2007. "Striving to Be “Clearly Open” and “Crystal Clear”: Monetary Policy Communication of the CNB," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(11-12), pages 540-557, December.

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