Forecasts and Inflation Reports : An Evaluation

  title={Forecasts and Inflation Reports : An Evaluation},
  author={Jon Faust and E M Leeper},
This paper argues that the most important aspect of central bank transparency is communication about the future path of the policy rate. Despite great progress on transparency, communication on this topic remains shrouded in an obscure code. Central banks can enhance transparency by providing, in decreasing order of importance: i) an unconditional forecast of the policy interest rate; ii) an unconditional forecast of goal variables; iii) conditional forecasts of rates and goal variables. 


Publications referenced by this paper.
Showing 1-10 of 12 references

Econometric Analysis of Conditional Forecasts with an Application to Central Banking

Faust, Jon, Jonathan H. Wright
in preparation • 2005

News and Noise in G-7

Faust, Jon, +3 authors H Jonathan
GDP Announcements, • 2005

Report on modeling and forecasting at the Bank

March. Pagan, Adrian
ber. Norges Bank • 2005

Communication with the Public, manuscript, Reserve Bank of New Zealand

Archer, David

Monetary Policy’s Role in Exchange Rate Behavior

Faust, Jon, John H. Rogers
Journal of Monetary Economics, • 2003

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