, thereby lowering interest rate volatility and contributing to economic stability. Most empirical studies support this view … volatility. To extend the literature, I use the Dincer and Eichengreen (2007) transparency index for twenty-four economies of … varying income and examine the impact of transparency on both predictability and market volatility. I find that higher …

method is compared in its ability to capture the dynamics of short rate volatility to a class of one-factor diffusion models … semiparametric approach produces more accurate volatility estimates than models that accommodate asymmetry, levels effect and serial … volatility of interest rate changes. The improvement in modelling short rate volatility using the new procedure has implications …