Forecasts and Inflation Reports: An Evaluation
نویسندگان
چکیده
This paper argues that the most important aspect of central bank transparency is communication about the future path of the policy rate. Despite great progress on transparency, communication on this topic remains shrouded in an obscure code. Central banks can enhance transparency by providing, in decreasing order of importance: i) an unconditional forecast of the policy interest rate; ii) an unconditional forecast of goal variables; iii) conditional forecasts of rates and goal variables.
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