Heightened transparency on the part of central banks lowers the dispersion among the forecasters of key economic variables, according to a paper published by the Centre for Economic Policy Research (CEPR) in December. The paper, entitled ‘The role of central bank transparency for guiding private sector forecasts,' finds, however, that there may be limits to the effects of transparency.

The authors argue that there is a role for clarity and openness in central banks' communication to cut the cost