An Index for Transparency for Inflation-Targeting Central Banks: Application to the Czech National Bank
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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. 2018/210
Subject:
Central bank policy rate Central bank transparency Central banks Economic sectors Financial crises Financial sector policy and analysis Financial sector stability Financial services Inflation Inflation targeting Monetary policy Prices
English
Publication Date:
September 28, 2018
ISBN/ISSN:
9781484374832/1018-5941
Stock No:
WPIEA2018210
Pages:
71
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