economic performance under inflation targets, and arguments that the flexible exchange rate has undermined real economic …

stability. To contain domestic inflation these central banks absorb rather then provide liquidity in their regular monetary … policy operations. Based on an augmented Barro-Gordon framework we show that inflation targeting within an environment of … implementing sterilization costs into the central bank’s objective function the inflation bias increases. …

policy frameworks. It shows that increases in information disclosure have not been confined to inflation targeting but extend … inflation and economic development have undergone larger increases in transparency. Moreover, it shows that greater transparency … has been followed by lower average inflation. …

-shaped relation between the membership size of MPCs and inflation; our results suggest that the lowest level of inflation is reached … at MPCs with about seven to ten members. Similar results are obtained for other measures, such as inflation variability …

sector inflation expectations. In contrast, opaque central banks limit their stabilization efforts to avoid disturbing … inflation expectations. As a result, they mute their interest rate response and no longer fully offset anticipated demand shocks …