In this paper we examine whether publishing the information underlying the central bank's decisions is socially desirable. We show that opacity may lead to the same equilibrium as transparency. However, additional equilibria may emerge under opacity with adverse consequences for welfare....

In this paper we provide an overview over the literature on transparency in monetary policy. We distinguish between three types of transparency, namely goal transparency, knowledge transparency and operational transparency. Goal transparency may seem desirable from a political viewpoint and...

We examine whether the transparency of the weight central banks attach to employment goals compared to inflation targets is beneficial. We show that society prefers transparency if it sufficiently values the employment target, whereas it prefers opacity if it estimates inflation as sufficiently...