In 1994, the Federal Reserve System moved to a more transparent reporting of monetary policy. This article assesses the impact of monetary policy transparency on uncertainty about future monetary policy using T-bill rate forecast dispersions and ex post forecast errors from the Survey of Professional Forecasters as a proxy for monetary policy uncertainty. The empirical findings confirm that Federal Reserve transparency has reduced the uncertainty about future monetary policy.
Hayford, Marc D. and Malliaris, Anastasios G.. Transparent U.S. Monetary Policy: Theory and Tests. Applied Economics, 44, 7: 813-824, 2011. Retrieved from Loyola eCommons, School of Business: Faculty Publications and Other Works, http://dx.doi.org/10.1080/00036846.2010.524628
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Author Posting. © Taylor & Francis 2012. This article is posted here by permission of Taylor & Francis for personal use, not for redistribution. The article was published in Applied Economics, vol. 44. no. 7, 2011, https://doi.org/10.1080/00036846.2010.524628