Central bank transparency and exchange rate volatility effects on inflation-output volatility

• Stephanos Papadamou ^[1] ; Moïse Sidiropoulos ^{[2] [4]} ; Eleftherios Spyromitros ^{[3] [4]}
  1. [1] University Of Thessaly

     University Of Thessaly

     Dimos Volos, Grecia

     
  2. [2] Aristotle University of Thessaloniki

     Aristotle University of Thessaloniki

     Dimos Thessaloniki, Grecia

     
  3. [3] Democritus University of Thrace

     Democritus University of Thrace

     Dimos Komotini, Grecia

     
  4. [4] University of Strasbourg

     University of Strasbourg

     Arrondissement de Strasbourg-Ville, Francia

     

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• Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 5, Nº. 4, 2016 (Ejemplar dedicado a: Special Issue Selected papers from 2nd AMEF (May 2016)), págs. 125-133
• Idioma: inglés
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• Resumen

  • While the tendency towards more transparent central banks is irrefutable, the effects of more transparent monetary policies mainly on output volatility are not clear-cut. In this note, we estimate our panel for 36 countries over the period 1998-2005 which is characterized by significant changes in central bank transparency levels, using the Prais-Winsten method with PCSEs and controlling for the exchange rate volatility that positively affects inflation and output. We provide evidence in favor of transparency and exchange rate stability policies since they reduce both output and inflation volatility.