The Economic Impact of Central Bank Transparency: A Survey
CentER Discussion Paper Series No. 2007-06
43 Pages Posted: 9 Feb 2007
Date Written: January 2007
We provide an up-to-date overview of the literature on the desirability of central bank transparency from an economic viewpoint. Since the move towards more transparency, a lot of research on its effects has been carried out. First, we show how the theoretical literature has evolved, by looking into branches inspired by Cukierman and Meltzer (1986) and by investigating several, more recent, research strands (e.g. coordination and learning). Then, we summarize the empirical literature which has been growing more recently. Last, we discuss whether: - the empirical research resolves all theoretical question marks, - how the findings of the literature match the actual practice of central banks, and - where there is scope for more research.
Keywords: central bank transparency, monetary policy, survey
JEL Classification: E31, E52, E58
Suggested Citation: Suggested Citation