February 19, 2004: Sylvester C.W. Eijffinger: How Transparent Are Central Banks?

Abstract

February 19, 2004

How Transparent Are Central Banks?

Sylvester C.W. Eijffinger (Tilburg University) and Petra M. Geraats (University of Cambridge)

Central bank transparency has become the topic of a lively public and academic debate on monetary policy. Unfortunately, it has been complicated by the fact that transparency is a qualitative concept that is hard to measure. This paper proposes a comprehensive index for central bank transparency that comprises the political, economic, procedural, policy and operational aspects of central banking. The index is compiled for nine major central banks. It is based on a detailed analysis of actual information disclosure and reveals a rich variety in the degree and dynamics of central bank transparency.

Keywords: central bank transparency, monetary policy

JEL classification: E52, E58

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Supplement

Contact person: Zsolt Darvas

darvaszs@mnb.hu

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