Inflation targeting, transparency and interest rate volatility: ditching "monetary mystique" in the U.K.

Chadha, J. S. and Nolan, C. (2001) Inflation targeting, transparency and interest rate volatility: ditching "monetary mystique" in the U.K. Journal of Macroeconomics, 23(3), pp. 349-366. (doi: 10.1016/S0164-0704(01)00168-9)

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Publisher's URL: http://dx.doi.org/10.1016/S0164-0704(01)00168-9

Abstract

Monetary authorities often seem reluctant to discuss the conduct of monetary policy. There is a concern that greater openness in monetary policy-making may lead to volatility in financial markets, and specifically in interest rates. Although there is very little direct empirical evidence examining this concern, recent changes in the monetary policy framework of the U.K. provide an opportunity to gain some insight. Interestingly, the evidence suggests that even though volatility has indeed risen in the recent past in the U.K. there is no evidence that this volatility is directly attributable to increased information flows per se.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Nolan, Professor Charles
Authors: Chadha, J. S., and Nolan, C.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Journal of Macroeconomics
Publisher:Elsevier
ISSN:0164-0704
ISSN (Online):1873-152X

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