Transparency 'Footprints' of Central Banks: The Role of Minutes/Voting Records

Abstract

In most academic studies the ECB is seen as more transparent than the FED. However, the perception of ECB transparency by the media and market participants is different. This study will examine the role of minutes/voting records as a possible cause of the differences in the perception of transparency between the academics and the media/market participants. As a proxy of how the media/market participants perceive Central Bank transparency, a content/thematic analysis of CNBC video clips was conducted for four central banks – ECB, FED, BOE and BOJ. The result of the study yielded a three-dimensional "footprint" of the importance of minutes/voting records as perceived by the media/market participants. In the ECB’s case, the three-dimensional "footprint" was extrapolated. The three-dimensional "footprint" of the importance of minutes/voting records could be used to value the relative importance of minutes/voting records in transparency/disclosure indexes or as a "quick" proxy for financial markets participants to measure the transparency of Central Banks.

Keywords: Monetary Policy, Transparency

JEL Classification: E52, E58