Despite the recent trend towards greater transparency of monetary policy, in many respects mystique still prevails in … assumption of imperfect common knowledge about the degree of central bank transparency, economic outcomes are affected by both … the actual and perceived degree of transparency. It is shown that actual transparency is beneficial while it may be useful …

transparency reduces the inflationary bias and gives the central bank greater flexibility to respond to shocks in the economy …. Furthermore, it makes it easier for a central bank to build reputation. To achieve these benefits of transparency it is generally …

Despite the recent trend towards greater transparency of monetary policy, in many respects mystique still prevails in … assumption of imperfect common knowledge about the degree of central bank transparency, economic outcomes are affected by both … the actual and perceived degree of transparency. It is shown that actual transparency is beneficial while it may be useful …

Despite the recent trend towards greater transparency of monetary policy, in many respects mystique still prevails in … assumption of imperfect common knowledge about the degree of central bank transparency, economic outcomes are affected by both … the actual and perceived degree of transparency. It is shown that actual transparency is beneficial while it may be useful …

caused by uncertainty about the economic disturbances to which the central bank responds. Only perfect transparency about …