An Index for Transparency for Inflation-Targeting Central Banks: Application to the Czech National Bank

72 Pages Posted: 16 Oct 2018

See all articles by Rania Al-Mashat

Rania Al-Mashat

International Monetary Fund (IMF)

Aleš Bulíř

International Monetary Fund (IMF)

N. Nergiz Dincer

TED University; TED University Trade Research Center (TEDUTRC); Economic Research Forum

Tibor Hlédik

Czech National Bank

Tomás Holub

Czech National Bank (CNB)

Asya Kostanyan

CBA

Douglas Laxton

International Monetary Fund (IMF) - Research Department

Armen Nurbekyan

CBA

Rafael Portillo

International Monetary Fund (IMF)

Hou Wang

International Monetary Fund (IMF)

Date Written: September 2018

Abstract

This paper develops a new central bank transparency index for inflation-targeting central banks (CBT-IT index). It applies the CBT-IT index to the Czech National Bank (CNB), one of the most transparent inflation-targeting central banks. The CNB has invested heavily in developing a Forecasting and Policy Analysis System (FPAS) to implement a full-fledged inflation-forecast-targeting (IFT) regime. The components of CBT-IT index include measures of transparency about monetary policy objectives, the FPAS designed to support IFT, and the monetary policymaking process. For the CNB, all three components have shown substantial improvements over time but a few gaps remain. The CNB is currently working on eliminating some of these gaps.

Keywords: Central banks, Czech Republic, Europe, Inflation targeting, Monetary policy, Transparency, General

JEL Classification: E00, E40, F00

Suggested Citation

Al-Mashat, Rania and Bulir, Ales and Dincer, Nazire Nergiz and Hlédik, Tibor and Holub, Tomás and Kostanyan, Asya and Laxton, Douglas and Nurbekyan, Armen and Portillo, Rafael and Wang, Hou, An Index for Transparency for Inflation-Targeting Central Banks: Application to the Czech National Bank (September 2018). IMF Working Paper No. 18/210, Available at SSRN: https://ssrn.com/abstract=3267236

Rania Al-Mashat (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Ales Bulir

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Nazire Nergiz Dincer

TED University ( email )

Ziya Gokalp Bulvari No: 48
Kolej Çankaya, Ankara 06420
Turkey

TED University Trade Research Center (TEDUTRC) ( email )

Ziya Gokalp Bulvari No: 48
Kolej Çankaya, Ankara 06420
Turkey

Economic Research Forum ( email )

21 Al-Sad Al-Aaly St.
(P.O. Box: 12311)
Dokki, Cairo
Egypt

Tibor Hlédik

Czech National Bank ( email )

Na Prikope 28
CZ-11503 Praha 1
Czech Republic

Tomás Holub

Czech National Bank (CNB) ( email )

Na Prikope 28
CZ-11503 Praha 1
Czech Republic

Asya Kostanyan

CBA ( email )

Vazgen Sargsyan 6
Armenia

Douglas Laxton

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Armen Nurbekyan

CBA ( email )

Vazgen Sargsyan 6
Armenia

Rafael Portillo

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Hou Wang

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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