The implications of central bank transparency for uncertainty and disagreement

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

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The implications of central bank transparency for uncertainty and disagreement. / Jitmaneeroj, Boonlert; Lamla, Michael J.; Wood, Andrew.

in: Journal of International Money and Finance, Jahrgang 90, 01.02.2019, S. 222-240.

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

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@article{6b804f28c1bf4fee842e40dd6152b297,
title = "The implications of central bank transparency for uncertainty and disagreement",
abstract = "Using survey data from 25 economies we provide evidence that greater transparency surrounding monetary policy reduces uncertainty of interest rates and inflation, primarily by reducing uncertainty that is common to agents rather than disagreement between agents. This suggests that studies that focus on disagreement as a proxy for uncertainty understate the benefits of monetary policy transparency. The adoption of inflation targets and forward guidance are both associated with lower uncertainty, although inflation targets have a stronger impact on reducing uncertainty than forward guidance. Moreover, there are diminishing benefits from ever higher levels of transparency. Taken as a whole, our results support the contention that clarity of communication is as important as the magnitude of transparency.",
keywords = "Economics, Central bank transparency, Disagreement, Monetary policy, Uncertainty",
author = "Boonlert Jitmaneeroj and Lamla, {Michael J.} and Andrew Wood",
year = "2019",
month = feb,
day = "1",
doi = "10.1016/j.jimonfin.2018.10.002",
language = "English",
volume = "90",
pages = "222--240",
journal = "Journal of International Money and Finance",
issn = "0261-5606",
publisher = "Elsevier B.V.",

}

RIS

TY - JOUR

T1 - The implications of central bank transparency for uncertainty and disagreement

AU - Jitmaneeroj, Boonlert

AU - Lamla, Michael J.

AU - Wood, Andrew

PY - 2019/2/1

Y1 - 2019/2/1

N2 - Using survey data from 25 economies we provide evidence that greater transparency surrounding monetary policy reduces uncertainty of interest rates and inflation, primarily by reducing uncertainty that is common to agents rather than disagreement between agents. This suggests that studies that focus on disagreement as a proxy for uncertainty understate the benefits of monetary policy transparency. The adoption of inflation targets and forward guidance are both associated with lower uncertainty, although inflation targets have a stronger impact on reducing uncertainty than forward guidance. Moreover, there are diminishing benefits from ever higher levels of transparency. Taken as a whole, our results support the contention that clarity of communication is as important as the magnitude of transparency.

AB - Using survey data from 25 economies we provide evidence that greater transparency surrounding monetary policy reduces uncertainty of interest rates and inflation, primarily by reducing uncertainty that is common to agents rather than disagreement between agents. This suggests that studies that focus on disagreement as a proxy for uncertainty understate the benefits of monetary policy transparency. The adoption of inflation targets and forward guidance are both associated with lower uncertainty, although inflation targets have a stronger impact on reducing uncertainty than forward guidance. Moreover, there are diminishing benefits from ever higher levels of transparency. Taken as a whole, our results support the contention that clarity of communication is as important as the magnitude of transparency.

KW - Economics

KW - Central bank transparency

KW - Disagreement

KW - Monetary policy

KW - Uncertainty

UR - http://www.scopus.com/inward/record.url?scp=85055028208&partnerID=8YFLogxK

U2 - 10.1016/j.jimonfin.2018.10.002

DO - 10.1016/j.jimonfin.2018.10.002

M3 - Journal articles

AN - SCOPUS:85055028208

VL - 90

SP - 222

EP - 240

JO - Journal of International Money and Finance

JF - Journal of International Money and Finance

SN - 0261-5606

ER -

DOI