The economic impact of central bank transparency

C.A.B. van der Cruijsen

Research output: ThesisDoctoral ThesisScientific

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Abstract

During the last decades a lot of central banks have become more transparent about their monetary policy. The research question that is addressed in this book is whether central bank transparency is desirable from an economic viewpoint. It is shown that transparency increases have been beneficial. They have resulted in better anchored inflation expectations, lower inflation persistence, better aligned inflation perceptions, more trust in the central bank, and lower nominal interest rates. However, central banks would be wise to not strive for full transparency. A large amount of public information results in confusion or too much weight on the uncertainty surrounding forecasts, resulting in more persistent inflation. In short, the answer to the research question is "yes, but only up to a certain point".
Original languageEnglish
QualificationDoctor of Philosophy
Awarding Institution
  • Tilburg University
Supervisors/Advisors
  • Eijffinger, Sylvester, Promotor
  • Hoogduin, L.H., Promotor, External person
Award date14 Nov 2008
Place of PublicationTilburg
Publisher
Print ISBNs9789056682231
Publication statusPublished - 2008

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Central bank
Economic impact
Central bank transparency
Inflation
Transparency
Uncertainty
Nominal interest rate
Inflation expectations
Economics
Inflation persistence
Monetary policy
Public information

Cite this

van der Cruijsen, C. A. B. (2008). The economic impact of central bank transparency. Tilburg: CentER, Center for Economic Research.
van der Cruijsen, C.A.B.. / The economic impact of central bank transparency. Tilburg : CentER, Center for Economic Research, 2008. 194 p.
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van der Cruijsen, CAB 2008, 'The economic impact of central bank transparency', Doctor of Philosophy, Tilburg University, Tilburg.

The economic impact of central bank transparency. / van der Cruijsen, C.A.B.

Tilburg : CentER, Center for Economic Research, 2008. 194 p.

Research output: ThesisDoctoral ThesisScientific

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T1 - The economic impact of central bank transparency

AU - van der Cruijsen, C.A.B.

PY - 2008

Y1 - 2008

N2 - During the last decades a lot of central banks have become more transparent about their monetary policy. The research question that is addressed in this book is whether central bank transparency is desirable from an economic viewpoint. It is shown that transparency increases have been beneficial. They have resulted in better anchored inflation expectations, lower inflation persistence, better aligned inflation perceptions, more trust in the central bank, and lower nominal interest rates. However, central banks would be wise to not strive for full transparency. A large amount of public information results in confusion or too much weight on the uncertainty surrounding forecasts, resulting in more persistent inflation. In short, the answer to the research question is "yes, but only up to a certain point".

AB - During the last decades a lot of central banks have become more transparent about their monetary policy. The research question that is addressed in this book is whether central bank transparency is desirable from an economic viewpoint. It is shown that transparency increases have been beneficial. They have resulted in better anchored inflation expectations, lower inflation persistence, better aligned inflation perceptions, more trust in the central bank, and lower nominal interest rates. However, central banks would be wise to not strive for full transparency. A large amount of public information results in confusion or too much weight on the uncertainty surrounding forecasts, resulting in more persistent inflation. In short, the answer to the research question is "yes, but only up to a certain point".

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T3 - CentER Dissertation Series

PB - CentER, Center for Economic Research

CY - Tilburg

ER -

van der Cruijsen CAB. The economic impact of central bank transparency. Tilburg: CentER, Center for Economic Research, 2008. 194 p. (CentER Dissertation Series).