Which kind of transparency? On the need for clarity in monetary policy-making
Year: 2000
Type: preprint
Abstract: In most of the existing academic literature the notion of transparency in monetary policy is defined in too simple terms to be of practical relevance. This paper suggests a conceptual framework, which distinguishes different - and potentially conflicting - aspects of transparency. When there are frictions in communication or imperfections in the processing of information, greater "openness" (i.e. more information) need not always enhance the "clarity" of central bank communication. In this perspective transparency primarily hinges on a shared mode of interpretation ("common understanding") between the central bank and its audience.
DOI: 10.2139/ssrn.355587
Author: Bernhard Winkler
Institution: European Central Bank
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1606785217