This paper explores the effects of central bank transparency on the performance of optimal inflation targeting rules. I … assume that both the central bank and the private sector face uncertainty about the "correct" model of the economy and have … to learn. A transparent central bank can reduce one source of uncertainty for private agents by communicating its policy …

implications for central bank behavior are compared to the time-series properties of inflation, and the response of interest rates …

discussed how quickly a central bank should reduce inflation to its desired level following an inflationary episode. He argued … that a central bank is unlikely to wish to move immediately to price stability, since there are costs to disinflation and … agents have to learn about the central bank's commitment to price stability, also mean that a central bank may wish to react …