How transparent can central bank be in explaining for policy

Reference no: EM131483403

Question: The May 13, 2006, issue of The Economist noted that "rather than worrying about being predictable-indicating to markets precisely what they are going to do next-central bankers ought to worry about being transparent-explaining how they think and why they choose their policies." How transparent can central banks be in explaining their reasoning for policy? Would it be easier for monetary authorities to be more transparent if they have an explicit framework such as inflation targeting?

Reference no: EM131483403

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