Publication at Faculty of Social Sciences |
2007
Abstract
The Czech National Bank has a respectable track record in terms of its policy actions and the corresponding inflation outturns. We analyze its main communication tools - inflation targets, inflation forecasts, verbal assessments of the inflation risks contained in quarterly inflation reports, and the voting within the CNB Board - to assess clarity of communication.
We find that these tools provided a very clear message in about three out of every four observations in our 2001-2005 sample.