The second part of the thesis deals with interest rate policy under inflation targeting when there is uncertainty in the term structure of interest rates emanating from unobserved, possibly volatile, market sentiments. In situations where expectations depend on the state of the economy--the rate...

Monetary institutions differ considerably between the main industrial countries. Differences in preferences, labor market characteristics, political stability and the structure of the economy make that different countries have different needs. These different needs are also reflected in the...

When comparing the transparency of the ECB now with the transparency of the<br/>ECB about one decade ago, we notice that transparency still can be improved in<br/>a few ways. In particular the disclosure related to the ways decisions are reached<br/>and the disclosure on its policy (what is the envisioned path...