The effect of central bank transparency on inflation persistence

Authors

  • Georgios Oikonomou Democritus University of Thrace, Department of Economics, University Campus, 69100 Komotini, Greece
  • Stephanos Papadamou Department of Economics, University of Thessaly, 28th October 78 Str., Volos, Greece
  • Eleftherios Spyromitros Democritus University of Thrace, Department of Economics, University Campus, 69100 Komotini, Greece

DOI:

https://doi.org/10.17811/ebl.10.1.2021.58-68

Abstract

In this paper, we examine the effect of central bank transparency on inflation persistence, using panel data analysis. The existing literature has shown a significant impact of central bank transparency on macroeconomic variables, such as inflation, but not many efforts have been made about its effect on inflation persistence. We use yearly data for 14 countries and the Eurozone (ECB). We find that monetary policy transparency has a negative statistically significant impact on inflation persistence, while controlling also for important variables such as GDP growth, interest rates, economic openness and unit labour cost.

Author Biographies

Georgios Oikonomou, Democritus University of Thrace, Department of Economics, University Campus, 69100 Komotini, Greece

Phd Candidate in Monetary Economics, Dept. Economics

Stephanos Papadamou, Department of Economics, University of Thessaly, 28th October 78 Str., Volos, Greece

Professor of Economics in Money and Banking, Dept. Economics

Eleftherios Spyromitros, Democritus University of Thrace, Department of Economics, University Campus, 69100 Komotini, Greece

Assistant Professor in Economic Analysis, Dept. Economics

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Published

2021-02-21

How to Cite

Oikonomou, G., Papadamou, S., & Spyromitros, E. (2021). The effect of central bank transparency on inflation persistence. Economics and Business Letters, 10(1), 58-68. https://doi.org/10.17811/ebl.10.1.2021.58-68

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