An Index for Transparency for Inflation-Targeting Central Banks: Application to the Czech National Bank

Author/Editor:

Rania A. Al-Mashat ; Ales Bulir ; N. Nergiz Dinçer ; Tibor Hlédik ; Tomás Holub ; Asya Kostanyan ; Douglas Laxton ; Armen Nurbekyan ; Rafael A Portillo ; Hou Wang

Publication Date:

September 28, 2018

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This paper develops a new central bank transparency index for inflation-targeting central banks (CBT-IT index). It applies the CBT-IT index to the Czech National Bank (CNB), one of the most transparent inflation-targeting central banks. The CNB has invested heavily in developing a Forecasting and Policy Analysis System (FPAS) to implement a full-fledged inflation-forecast-targeting (IFT) regime. The components of CBT-IT index include measures of transparency about monetary policy objectives, the FPAS designed to support IFT, and the monetary policymaking process. For the CNB, all three components have shown substantial improvements over time but a few gaps remain. The CNB is currently working on eliminating some of these gaps.

Series:

Working Paper No. 18/210

Subject:

English

Publication Date:

September 28, 2018

ISBN/ISSN:

9781484374832/1018-5941

Stock No:

WPIEA2018210

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

71

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