The Transparency of Central Bank Preferences
19 Pages Posted: 18 Sep 2004
Date Written: January 2006
We examine whether the transparency of the weight central banks attach to employment goals compared to inflation targets is beneficial. We show that society prefers transparency if it sufficiently values the employment target, whereas it prefers opacity if it estimates inflation as sufficiently important.
Keywords: Central Bank Objectives, Transparency
JEL Classification: E58
Suggested Citation: Suggested Citation