Central bank transparency has become a key feature of monetary policy. The goal of my research was to provide a deeper look into central bank transparency to determine if there is any correlation to macroeconomic indicators which could provide economists with conclusive evidence regarding the health of a country’s economy. Central bank independence is known to be correlated with macroeconomic indicators and it is strongly believed that without transparency a central bank could not be independent. The project was formed after looking at the research of economists Efjiffinger, Eichengreen, and Dincer. A new index, based on five different macroeconomic indicators, was created and data was analyzed to determine the correlation to central bank transparency (38 banks considered).
by Caleigh Johnson '21