The unemployment effect of central bank transparency

Weber, Christoph

doi:10.1007/s00181-019-01741-1

Cited by 4 publications

(2 citation statements)

References 106 publications

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“…Therefore, marketing communication with citizens is crucial (Krizanova et al 2019) because the better central banks explain their reasoning behind the provided public services, such as monetary policy decisions, the more successful these decisions will be. Therefore, central banks must disclose comprehensive information about their strategies, mandates, decisions, and analyses (Weber 2020). The marketing communication strategy must be clear, comprehensive, and exhaustive.…”

Section: Public Service Marketing Communication Within Central Banksmentioning

confidence: 99%

Adapting the Digital Servuction Model to Central Banks: Case Study: European Central Bank

Prodan,

Dabija

2023

Administrative Sciences

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Central bank communication has changed over the years, following the trend of digitalization. It has been used as a tool for the implementation of monetary policies since the 1990s, when central banks started publishing their inflation reports, outlooks, and meeting minutes on the road towards greater transparency, and to help meet their price stability mandate. This mandate cannot be achieved through traditional financial instruments alone, so digital communication and marketing has become an economic policy tool. The effectiveness of the European Central Bank’s online communication tools will be tested via a GAP model, by applying an adapted version of the servuction scale to the Bank and disseminating it to 500 citizens, with the purpose of measuring citizen satisfaction with its website and communications. The servuction model focuses on high quality services that are perceived as such by private sector customers, having a strong marketing component. The originality of the research consists in adapting it to the public sector, more specifically to central banks, and by treating citizens as customers throughout the study. The model was successfully applied to the European Central Bank, demonstrating that citizens’ expectations are highest regarding both the reliability and assurance dimensions, meaning that they want to feel confident in ECB actions, and to the understandability dimension of its online content. The largest gaps between citizens’ expectations and perceptions were identified within the efficiency, understandability, and empathy dimensions. In future, the study can be replicated and adapted to both national central banks and private banks within the European Union, assessing how citizens perceive their websites, communication, and marketing strategies, with the purpose of improving the latter two, and increasing civic engagement. The model can also be adapted to narrower topics relating to sustainable digital development, such as the expectations and perceptions of citizens with regards to central bank digital currencies.

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Section: Public Service Marketing Communication Within Central Banksmentioning

confidence: 99%

Adapting the Digital Servuction Model to Central Banks: Case Study: European Central Bank

Prodan,

Dabija

2023

Administrative Sciences

View full text Add to dashboard Cite

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“…Subsequently, Dincer & Eichengreen (2014) and Dincer, Eichenngreen & Geraats (2019) have extended the CBT dataset. Empirically, Some studies examine the economic impact of CBT like the link between CBT and Economic fundamentals: inflation volatility (Dincer & Eichengreen, 2014;Weber, , 2019a, unemployment (Weber, 2019b), and output volatility (Papadamou, Sidiropoulos & Spyromitros, 2016). Similarly, some studies highlight the role of CBT in managing market expectations (Neuenkirch, 2012(Neuenkirch, , 2013 and reducing forecast disagreements (Seelajaroen, Budsaratragoon & Jitmaneeroj, 2019;Trabelsi, 2016).…”

Section: Introductionmentioning

confidence: 99%

Does Central Bank Transparency Deter the Exchange Rate Volatility? New Evidence from Asian Emerging Markets

Aftab

Mehmood

2023

Journal of Central Banking Theory and Practice

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Exchange rate volatility has emerged as a significant challenge for Asian emerging markets since the adoption of the liberalization process. This study examines the influence of central bank transparency on exchange rate volatility using a sample of ten important Asian emerging markets. The study uses a fixed effect regression model covering the Asian financial crisis, global financial crisis, banking crisis, and taper tantrum episodes. Results show that an increase in central bank transparency has a stabilizing effect on exchange rate volatility, and this effect remains even after controlling for various internal and external factors. The uncertainty of US monetary policy increases exchange rate volatility, while US economic policy uncertainty contributes only during the global financial crisis. Interestingly, central bank transparency buffers the effects of the global financial crisis, indicating that it plays a facilitating role in maintaining financial stability. Studies that examine the role of central bank transparency in curbing exchange rate volatility, which is a crucial issue in these markets, are rare in emerging markets’ context. This research offers interesting findings by using a variety of robustness checks.

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Central Bank Transparency and Interest Rate Volatility

Weber

2024

Int. J Fin Econ

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Most central banks around the world have increased their transparency in recent decades. These developments have had an impact on financial markets. Several studies have analysed the impact of central bank transparency (CBT) on variables such as inflation volatility, exchange rate volatility, or stock market volatility. One variable that has not received enough attention is interest rate volatility, despite its importance for decision‐makers in both financial markets and the real economy. The study uses a panel data set of a maximum of 93 countries over the years 1998–2017. We use panel data estimators (panel fixed effects and fixed effects filter). Our main findings are that CBT helps to reduce the volatility of several interest rates (money market rates, deposit rates, savings rates, Treasury bill yields and government bond yields), while it increases the volatility of monetary policy rates. The results are also significant from an economic point of view, as a small increase in CBT can reduce the variability of treasury bill rates by up to −8.2%, deposit rates by up to −9.1%, money market rates by up to −15.8% and savings rates by up to −20.4%.

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The unemployment effect of central bank transparency

Cited by 4 publications

References 106 publications

Adapting the Digital Servuction Model to Central Banks: Case Study: European Central Bank

Adapting the Digital Servuction Model to Central Banks: Case Study: European Central Bank

Does Central Bank Transparency Deter the Exchange Rate Volatility? New Evidence from Asian Emerging Markets

Central Bank Transparency and Interest Rate Volatility

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