THE EFFICIENCY OF TRANSPARENT COMMUNICATION OF THE MONETARY POLICY DECISIONS IMPLEMENTED BY THE CENTRAL BANKS

Abstract

The main factor in the choice of this research paper was the curiosity of knowing the transparent communication of monetary policy decisions implemented by the most important Central Banks (ECB, BOJ, FED) on economics, in an environment characterized by constant changes in a very short time. Nowadays can be observed an increased interest among people, seen in the most diverse situations, like consumers, investors, producers, for central banks decisions, and the most central banks are more and more focused on transparency, especially in monetary policy, effective communication with the public is considered a priority. A high degree of transparency is an essential element of democratic responsibility of central banks. Transparency also increases the effectiveness of monetary policy to help guide economic agents expectations and bring them in line with political objectives. It is especially important that the  markets and the public have a good understanding of systematic and conditional conduct of the central bank monetary policy, so that expectations about future evolutions of prices and rates policy to comply with the mandate of the central bank.