American Economic Review: Papers and Proceedings 90, May 2000, 95-99
Abstract
This paper is a brief evaluation of the Eurosystem's monetary-policy
regime after its first year, in particular of the extent to which
it is similar to inflation targeting as practiced by an
increasing number of central banks. I examine the Eurosystem's goals,
framework for monetary-policy decisions and communication
with outsiders. Criteria for evaluation are whether the
goals are unambiguous and appropriate; whether the decision
framework is efficient in collecting and processing information
and reaching decisions that are appropriate relative to the goals;
and whether the communication is effective in motivating
decisions, simplifying external evaluation and thereby improving
transparency and accountability. I also consider whether the
actual instrument setting has been appropriate, given the
information available at the times of decision.
JEL Classification: E42, E52, E58
Keywords: Monetary targeting, ECB, transparency
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