Full-text resources of CEJSH and other databases are now available in the new Library of Science.
Visit https://bibliotekanauki.pl



2016 | 4 (65) | 7-26

Article title



Title variants

Languages of publication



This paper focuses on monetary policy transparency. Central banks’ practice in the field of communication, especially while signalling their intentions, is not reflected in most known transparency measures. The following paper presents a comparison of the best-known transparency indices and offers an extension to them that focuses on the forward-lookingness of the central bank. A more elaborate approach to signalling intentions is not covered by transparency measures developed in the pre-crisis period. Thus the purpose of this paper is methodological: developing extended transparency measures. Additionally, the application of these extensions is presented. The empirical part of the research covers the Czech Republic and Poland.






Physical description


  • Wyższa Szkoła Bankowa w Poznaniu


  • Archer D., Central Bank Communication and the Publication of Interest Rate Projections, A paper for a Sveriges Riksbank conference on inflation targeting, Stockholm, June 2005, http://www.riksbank.se/Upload/Dokument_riksbank/Kat_foa/Archer17May.pdf (accessed 10.08.2014).
  • Bajalan S., Raei R., Tehrani R., Development of an Index for Measuring the Central Bank’s Transparency, “Arguemnta Oeconomica”, 2015, Vol. 1, No. 28.
  • Barro R.J., Gordon D., Rules, Discretion and Reputation in a Model of Monetary Policy, “Journal of Monetary Economics”, 1983, Vol. 12, No. 1.
  • Bernanke B., Laubach T., Mishkin F.S., Posen A.S., Inflation Targeting: Lessons from the international Experience, Princeton University Press, Princeton 2001.
  • Bini-Smagh L., Gros D., Is the ECB Sufficiently Accountable and Transparent? European Network of Economic Policy Research Institutes Working Paper, 2001, No. 7.
  • Blinder A.S., Central Banking in Theory and Practice, MIT Press, Cambridge MA 1998.
  • Brzoza-Brzezina M., Kot A., The Relativity Theory Revised: Is Publishing Interest Rate Forecast Really so Valuable? National Bank of Poland Working Paper Series, 2008, No. 52.
  • Crowe C., Meade E., Central Bank Independence and Transparency: Evolution and Effectiveness, “European Journal of Political Economy”, 2008 Vol. 24, Issue 4.
  • Cukierman A.C., Meltzer A.H., A Theory of Ambiguity, Credibility and Inflation under Discretion and Asymmetric Information, “Econometrica”, 1986, Vol. 54, No. 5.
  • Dincer N.N., Eichengreen B., Central Bank Transparency: Why, Where, and with What Effects? National Bureau of Economic Research Working Paper, 2007, No. 13003.
  • Dincer N.N., Eichengreen B., Central Bank Transparency and Independence: Updates and New Measures, “International Journal of Central Banking”, 2014, Vol. 10, Issue 1.
  • Eijffinger S.C.W, Geraats P.M., How Transparent Are Central Banks, “European Journal of Political Economy”, 2006, Vol. 22.
  • Ferrero G., Secchi A., The Announcement of Future Policy Intentions, Bank of Italy Economic Working Papers, 2006, No. 720.
  • Fracasso A., Genberg H., Wyplosz Ch., How Do Central Bank Write? An Evaluation of Inflation Targeting Central Banks, Geneva Reports on the World Economy Special Report 2, International Center for Monetary and Banking Studies, 2003.
  • Fry M., Julius D., Mahadeva L., Roger S., Sterne G., (2000). Key Issues in the Choice of a Monetary Policy Framework, in: Monetary Policy Frameworks in a Global Context, Mahadeva L., Sterne, G. (Ed.), Routledge, London 2000.
  • Geraats P.M., Central Bank Transparency, “The Economic Journal”, 2002, Vol. 112, No. 483.
  • Geraats P.M., Monetary Policy Transparency, CESifo Working Paper Series, 2014, No. 4611.
  • Goodhart Ch.A.E., Bin Lim W., Interest Rate Forecast: a Pathology, “International Journal of Central Banking”, 2011, Vol. 6.
  • Grostal W., Ciżkowicz-Pękała M., Niedźwiedzińska J., Skrzeszewska-Paczek E., Stawasz E., Wesołowski G., Żuk P., Inflation Targeting Evolution. Some Examples, National Bank of Poland, Warsaw 2015.
  • Kahn G.A., Communicating a Policy Path: the Next Frontier in Central Bank Transparency? Federal Reserve Bank of Kansas City, Economic Review Q1, 2007.
  • Kydland F., Prescott R., Rules rather than Discretion: The Inconsistency of Optimal Plans, “Journal of Political Economy”, 1977, Vol. 85, No. 3.
  • Łyziak T., Mackiewicz J., Stanisławska E., Central Bank Transparency and Credibility: The Case of Poland, 1998–2004, “European Journal of Political Economy”, 2007, Vol. 23.
  • NBP, Inflation Report, Warsaw, November 2013.
  • Pfajfar D., Santoro E., News on inflation and the epidemiology of inflation expectations, “Journal of Money, Credit and Banking”, 2010, Vol. 45, Issue 6.
  • Phan T.A., Should Central Banks Publish Interest Rate Forecasts? A Survey, 2013, SSRN: http://ssrn.com/abstract=1913990
  • Rudebusch G.D., Williams J.C., Revealing the Secrets of the Temple: The Value of Publishing Central Bank Interest Rate Projections, Federal Reserve Bank of San Francisco Working Paper, 2006, No. 31.
  • Siklos P.L., Transparency is Not Enough: Central Bank Governance as the Next Frontier, in: Handbook of Central Banking, Financial Regulation and Supervision. After the Financial Crisis, S. Eijffinger, D. Masciandaro, (Ed.), Edward Elgar, Cheltenham, UK, Northampton, MA, USA 2010.
  • Siklos P.L., Central Bank Transparency: Another Look, “Applied Economic Letters”, 2011, Vol. 18, No. 10.
  • Svensson L.E.O., Forward Guidance, “International Journal of Central Banking”, 2015, No. 1, Supplement 1.
  • Winkler B., Which Kind of Transparency? on the Need for Clarity in Monetary Policy – Making, European Central Bank Working Paper Series, 2000, No. 26.
  • Woodford M., Forward Guidance by Inflation Targeting Central Bank, Paper prepared for the conference Two Cambridge Decades of Inflation Targeting: Main Lessons and Remaining Challenges, Sveriges Riksbank, June 3, 2013. http://www.columbia.edu/~mw2230/RiksbankIT.pdf

Document Type

Publication order reference



YADDA identifier

JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.