S/N | TRANSPARENCY DIMENSIONS | QUESTIONS | RESPONSES |
(1) | POLITICAL TRANSPARENCY | (a) Is there a formal statement of the objective(s) of monetary policy, with an explicit prioritization in case of multiple objectives? | No formal objective(s) = 0. Multiple objectives without prioritization = 1/2. One primary objective, or multiple objectives with explicit priority = 1. |
(b) Is there a quantification of the primary objective(s)? | No = 0. Yes = 1. | ||
(c) Are there explicit institutional arrangements or contracts between the monetary authorities and the government? | No Central Bank, contracts or other institutional arrangements = 0. Central Bank without explicit instrument independence or contract = 1/2. Central Bank with explicit instrument independence or Central Bank contract (although possibly subject to an explicit override procedure) = 1. | ||
(2) | ECONOMIC TRANSPARENCY | (a) Is the basic economic data relevant for the conduct of monetary policy publicly available? This focus on the release of data for the following five variables: money supply, inflation, GDP, unemployment rate and capacity utilization. | Quarterly time series for at most two out of the five variables = 0. Quarterly time series for three or four out of the five variables = 1/2. Quarterly time series for all five variables = 1. |
(b) Does the Central Bank disclose the formal macroeconomic model(s) it uses for policy analysis? | No = 0. Yes = 1. | ||
(c) Does the Central Bank regularly publish its own macroeconomic forecasts? | No numerical Central Bank forecasts for inflation and output = 0. Numerical Central Bank forecasts for inflation and/or output published at less than quarterly frequency = 1/2. Quarterly numerical Central Bank forecasts for inflation and output for the medium term (one to two years ahead), specifying the assumptions about the policy instrument (conditional or unconditional forecasts) = 1. | ||
(3) | PROCEDURAL TRANSPARENCY | (a) Does the Central Bank provide an explicit policy rule or strategy that describes its monetary policy framework? | No = 0. Yes = 1. |
(b) Does the Central Bank give a comprehensive account of policy deliberations (or explanations in case of a single Central Banker) within a reasonable amount of time? | No, or only after a substantial lag (more than 8 weeks) = 0. Yes, comprehensive minutes (although not necessarily verbatim or attributed) or explanations (in case of a single Central Banker), including a discussion of backward- and forward-looking arguments = 1. | ||
(c) Does the Central Bank disclose how each decision on the level of its main operating instrument or target was reached? | No voting records, or only after substantial lag (more than eight weeks) = 0. Non-attributed voting records = 1/2. Individual voting records, or decision by single Central Banker = 1. |