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La transparence de la politique monétaire et la dynamique des marchés financiers

Author

Listed:
  • Meixing Dai

    (Université de Strasbourg)

  • Moïse Sidiropoulos

    (Université de Strasbourg)

  • Eleftherios Spyromitros

    (University Campus, Komotini)

Abstract

This paper studies the implications, in terms of macroeconomic stability, of the relation between the degree of independence of the central bank and the degree of monetary policy transparency (opacity), in a model which takes account explicitly of stock market and therefore the joint dynamics of inflation and asset prices. We show that the lack of transparency on the preferences of the central bank exerts a negative influence on macroeconomic stability. This negative influence could be offset by the effects of a perceived relative weight (by the public) higher than that actually assigned by the central bank to the output objective. In addition, an economy characterized by a less flexible labor market, a demand for goods which is not very sensitive to the real interest rate, a high velocity of money and a high interest-elasticity of money demand require greater transparency to ensure economic stability.

Suggested Citation

  • Meixing Dai & Moïse Sidiropoulos & Eleftherios Spyromitros, 2007. "La transparence de la politique monétaire et la dynamique des marchés financiers," Bulletin de l'Observatoire des politiques économiques en Europe, Observatoire des Politiques Économiques en Europe (OPEE), vol. 0(4), pages 141-162, December.
    • Handle: RePEc:ulp:buopee:v:6:y:2002:m:3:i:3
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    References listed on IDEAS

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    Cited by:

    1. Meixing DAI, 2009. "On the role of money growth targeting under inflation targeting regime," Working Papers of BETA 2009-11, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Li Qin & Eleftherios Spyromitros & Moïse Sidiropoulos, 2007. "Monetary Policy with Uncertain Central Bank Preferences for Robustness," Working Papers of BETA 2007-23, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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    More about this item

    Keywords

    monetary policy; central bank transparency; stock prices;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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