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Monetary Policy Transparency in the Inflation Targeting

Author

Listed:
  • Mariusz Jarmuzek

    (CASE Center for Social & Economic Research)

  • Lucjan T. Orlowski

    (Sacred Heart University)

  • Artur Radziwill

    (CASE Center for Social & Economic Research)

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, 2005. "Monetary Policy Transparency in the Inflation Targeting," Macroeconomics 0502025, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0502025
    Note: Type of Document - pdf; pages: 32. This paper is part of research project supported by a grant from the CERGE-EI Foundation under a program of the Global Development Network
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0502/0502025.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. nnamdi, Kelechi & ifionu, Ebele, 2013. "Exchange rate volatility and exchange rate uncertainty in Nigeria: a financial econometric analysis (1970- 2012)," MPRA Paper 48316, University Library of Munich, Germany, revised 2013.
    2. Tóth, Máté Barnabás, 2006. "Az átláthatóság szerepe a jegybanki stratégiában [The role of transparency in central-bank strategy]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1080-1100.

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    More about this item

    Keywords

    monetary policy; institutional and behavioural transparency; direct inflation targeting; EU New Member States; European Monetary Union;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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