Monday, January 16, 2012

[Review] Clarity of Central Bank Communication About Inflation

The International Monetary Fund (IMF) has just released a working paper on central bank communication on inflation, which examines whether the clarity of central bank communications have changed with the economic environment.  The key finding of the paper is that there are "no strong indications that central banks were less clear in explaining their policies when faced with higher uncertainty or a less favorable inflation outlook."  However, the authors note that the global financial crisis "did have a negative impact on clarity of central bank communication."  The paper's authors are: Bulir, Ales; Cihák, Martin; and Jansen, David-Jan.

Reference: Bulir,A., Cihák, M., & Jansen, D. (2012) Clarity of Central Bank Communication About Inflation. International Monetary Fund, Working Paper No. 12/9


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