Kansas City Fed's Economic Review, 1st Quarter 07

The first quarter Federal Reserve Bank of Kansas Economic Review includes the article "Communicating a policy path: The next frontier in central bank transparency" which says in the last two decades, central banks have taken a variety of steps to increase the transparency of monetary policy. Today, many economists are suggesting ways to further increase transparency.

One area of considerable interest is the outlook for the future path of the policy rate. The policy rate is the short-term

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