Central Bank Transparency and Shocks

Journal article: According to the literature, in an expectations-augmented Phillips curve model, opacity is always preferred to transparency on central bank forecasts. By modelling the private sector's behavior explicitly, we show that transparency reduces the shocks. Consequently, transparency can be preferred.

Author(s)

Daniel Laskar

Journal
  • Economics Letters
Date of publication
  • 2010
Keywords JEL
E52 E58
Keywords
  • Shocks
  • Central bank
  • Transparency
  • Phillips curve
  • Shocks
Pages
  • 158-160
Version
  • 1
Volume
  • 107