Central Bank Transparency and Monetary Policy Effectiveness

The paper concentrates on the conditions, contingencies and determinants of central banktransparency and communication. From the state of the economy and the quality of nationalinstitutions, to the structure of monetary policy committees, the personality of the governor andthe nature of the monetary policy framework - with a particular focus on the case of inflationtargeting, there is a plethora of factors influencing the design and the conduct of acommunication strategy. The debate remains open on whether we can speak about best practiceor an optimal communication policy, but conflicting policy choices and outcomes seem to pointto the fact that communication remains one of the greatest challenges for every central banker.The conslusion of the study is that there is no one-size-fits-all dogma for transparency. Culturaland national differences are paramount for choosing the best practice.

Keywords:

Central Bank , Transparency , Communication