Central Bank Transparency and Communication

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Al-Mashat and others (2019) created a new Central Bank Transparency Index for Inflation-Targeting Central Banks (CBT-IT). Initially, the CBT-IT index was applied to the Czech National Bank (CNB), one of the most transparent central banks in the world. The applications of the CBT-IT have recently been extended to cover New Zealand and Chile, two central banks that are also important leaders in central bank transparency.  All three of these central banks have invested to develop state-of-the-art Forecasting and Policy Analysis Systems (FPAS) designed to support full-fledged inflation-forecast-targeting (IFT) regimes. The components of the CBT-IT index include measures of transparency about monetary policy objectives, the FPAS designed to support IFT, and the monetary policy-making process. For the CNB, all three components have shown substantial improvements over time but a few gaps remain. The CNB has already eliminated some of these gaps and is working on further improvement of its transparency.

Haworth, Kostanyan and Laxton (2020) provide estimates of transparency of the Reserve Bank of New Zealand (RBNZ) based on the CBT-IT index. Their paper describes how transparency has shaped the RBNZ’s approach to monetary policy. The story begins with how an inflation-targeting regime was adopted in 1989 to tame the high inflation of the time. The implementation of a forecasting and policy analysis system in 1997 provided the foundation for higher levels of transparency and the move to flexible inflation targeting. In 2019, the adoption of a dual mandate with an employment objective, the formalization of a Monetary Policy Committee, and the publication of the Bank’s Monetary Policy Handbook marked a new phase of transparency and public accountability.

The course aims at evaluating IT central banks' transparency and providing estimates of gaps for future improvements in transparency and its foundations (e.g. monetary policy framework, FPAS etc.). The course also provides sessions on central bank communications using real-world examples of very effective communication strategies.

This course will last 4 weeks. Participants will be expected to work full time but will have access to 2 hours of training each working day. The courses are organized to focus on the needs of each central bank. Class sizes are limited to 1-5 participants. There are significant discounts for central banks from low-income countries and for CBs that enroll more than 4 participants through the year.

 

Prerequisites

This online course is designed for managers and economists working in central banks. The participants will need:

  • Knowledge of the existing monetary policy framework.

  • Intermediate knowledge of macroeconomics.

 
 
 

Course Structure

Week 1

  • Present cases of Czech Republic, New Zealand and Chile

  • Principles and tools for effective central bank communications.

Week 2

  • Participants develop CBT-IT measures for their central bank.

  • Examples of central bank communications.

Week 3

Participants complete presentation and start drafting working paper.

Week 4

Participants finish draft working paper describing results and potential recommendations.

 

Dates for 2021 - 2022

Duration - 4 Weeks, 2 Hours Per Day

May 2 - 27, 2022

June 1 - 28, 2022

July 4 - 29, 2022

August 1 - 26, 2022

September 1 - 28, 2022

October 3 - 28, 2022

November 1 - 28, 2022

Price

Price for One Person Without any Discounts is €3000

This course will last 4 weeks. Participants will be expected to work full time but will have access to 2 hours of training each working day. The courses are organized to focus on the needs of each central bank. Class sizes are limited to 1-5 participants. There are significant discounts for central banks from low-income countries and for CBs that enroll more than 4 participants through the year.