'Why adopt transparency? Publishing forecasts'-ECB

A new ECB working paper by Petra Geraats has been published called "Why adopt transparency? The publication of central bank forecasts". It provides an explanation for the puzzling fact why several central banks have recently abandoned the usual secrecy in monetary policy and becomevery transparent by publishing forecasts.

The paper shows that transparency reduces the inflationary bias and gives the central bank greater flexibility to respond to shocks in the economy. Furthermore, itmakes it

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