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Transparency analysis in the function of central bank objective

Author

Listed:
  • Novak Kondić

    (Professor Dean of the Economics Faculty in Banjaluka, Republic of Srpska, Bosnia and Herzegovina)

  • Borivoje D. Krušković

    (Assistant Professor Economics Faculty in Banjaluka, Republic of Srpska, Bosnia and Herzegovina)

Abstract

During the late 1980s and early 1990s there was an interest in the academics literature in the role of transparency in monetary policy-making, which partly reflects the increased attention central banks devoted to communication issues in monetary policy practice. Most commonly, transparency implies the absence of asymmetrical information between financial markets and monetary policy makers. With respect to central bank, transparency requirement applies in the first instance to minimizing uncertainty associated with its monetary policy. An increase in transparency has been greatly influenced by the practice of publishing the inflation report, which is especially common in countries that accepted inflation targeting as their monetary strategy.

Suggested Citation

  • Novak Kondić & Borivoje D. Krušković, 2012. "Transparency analysis in the function of central bank objective," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 1(1), pages 77-90.
    • Handle: RePEc:cbk:journl:v:1:y:2012:i:1:p:77-90
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    monetary policy; inflation report; central bank; inflation; inflation targeting; interest rate;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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