While central bank transparency is widely accepted as a desirable, too much openness may have disadvantages. Discuss what some of these drawbacks might be.
Answer to relevant QuestionsSuppose the president of a newly independent country asks you for advice in designing the country’s new central bank. For each of the following design features, choose which one you would recommend and briefly explain ...Provide arguments for and against the proposition that a central bank should be allowed to set its own objectives.Financial stability is a goal of most central banks. Based on a graph showing the evolution of the European Central Bank’s assets (FRED code: ECBASSETS), how important was this goal for the ECB (a) Before 2007, (b) During ...Go to the ECB's web site and locate the most recent introductory statement made by the president of the ECB at the press conference following a Governing Council meeting. What was the Governing Council’s policy decision? ...How might the ECB’s pursuit of price stability as its primary objective restrict its response to the sovereign debt crisis in the euro zone?
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