Hoeberichts, Marco; Tesfaselassie, Mewael; Eijffinger, … - de Nederlandsche Bank - 2004
literature is that being transparent about its operations and beliefs hinders the central bank in achieving the best outcome. In … other words, a central bank needs flexibility and therefore cannot be fully transparent. Using a forward-looking New …-Keynesian model, we find exactly the opposite. A central bank that is conservative improves output stabilization by being transparent …