Rate signals and CB transparency

Interest rates should be added to the list of signals that central banks can reveal in order to be transparent, according to a paper published by the Centre for Economic Policy Research.

The paper also argues that central bank's policies regarding transparency should:

allow for more than one economic fundamental;

extend the range of uncertainties that matter; and

derive results that are general in the sense that they do not depend on a social welfare criterion.

Transparency policy should also

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