Analysis of Central Banks Transparency in Countries on the Road to the European Single Currency

This paper aims at analyzing the developments of the last decade and a half of monetary policy transparency followed by the central banks (CBs) in Central and Eastern European countries on the road to the euro adoption and to compare the results with those identified in the case of the European Central Bank (ECB). We approached the transparency level from the perspective of monetary policy strategies they use. The main results indicate increasing transparency within the considered timeframe for all monetary authorities subject to analysis, regardless of their monetary policy strategy, a higher level of transparency in the case of CBs applying a strategy of inflation targeting (IT) compared to those using the exchange rate as nominal anchor; a similar degree of transparency of the ECB and monetary authorities targeting inflation; the existence of a high degree of transparency, low inflation and stronger economic development in CEE states where the CBs target inflation compared to monetary authorities that are geared towards exchange rate targeting..