Transparency: too much of a good thing?

Too much monetary policy transparency can be bad, finds a new paper from the Bank of Japan.

The research finds that money-market traders are keen observers of central bank information disclosure but also provide important information on financial markets conditions. The research posits that traders often simply mimic the central bank's forecast so that the central bank simply observes its own forecast from traders. The paper concludes that too much transparency increases the likelihood of this

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