Transparency is a key element of the monetary policy framework.
a. Explain how transparency helps eliminate the problems that are created by central bank independence.
b. In what way did the financial crisis of 2007-2009 emphasize the importance of central bank transparency?
c. Since 1993, the Bank of England has published a quarterly Inflation Report. Find a copy of the report on the bank's Web site, www.bankofengland.co.uk. Describe its contents, and explain why the bank might publish such a document.