The Transparency of Central Bank Preferences
University of Konstanz
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.
Number of Pages in PDF File: 19
Keywords: Central Bank Objectives, Transparency
JEL Classification: E58
Date posted: September 18, 2004