Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56502
Authors: 
Hayo, Bernd
Mazhar, Ummad
Year of Publication: 
2011
Series/Report no.: 
Joint discussion paper series in economics 40-2011
Abstract: 
This paper studies monetary policy committee transparency (MPCT) based on a new index that measures central bankers' educational and professional backgrounds as disclosed through central bank websites. Based on a novel cross-sectional data set covering 75 central banks, we investigate the determinants of MPCT as well as its economic consequences. We find that past inflation, quality of institutional setup, and extent of Internet use in a country are important determinants of MPCT. MPCT has a robust and significantly negative impact on inflation variability, even after controlling for important macroeconomic variables and institutional transparency, as well as instrumenting MPCT in various ways.
Subjects: 
monetary policy committee
transparency
monetary policy transparency
monetary policy
central banks
JEL: 
E52
E58
D12
D83
Document Type: 
Working Paper

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