System). In the second part, we present a theory of central bank accountability. Two aspects of accountability are considered …: transparency of actual monetary policy and the question of who bears final responsibility for monetary policy. The paper shows that … accountability through transparency leads to a lower expected rate of inflation and less stabilization of supply shocks …

System). In the second part, we present a theory of central bank accountability. Two aspects of accountability are considered …: transparency of actual monetary policy and the question of who bears final responsibility for monetary policy. The paper shows that … accountability through transparency leads to a lower expected rate of inflation and less stabilization of supply shocks …

become one of several interlinked strands of debate on the desirability of transparency in hte conduct of monetary policy …

become one of several interlinked strands of debate on the desirability of transparency in hte conduct of monetary policy … ein roter Faden durch die Diskussion über das Thema, inwieweit Transparenz bei der Durchführung der Geldpolitik …

It is argued in literature that transparency may be detrimental to welfare. Morris and Shin (2002) suggest reducing the …