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July/August 2002, 
Vol. 84, No. 4
Posted 2002-07-01

Panel Discussion: Transparency in the Practice of Monetary Policy

by Charles Freedman, Václav Klaus, and J. Alfred Broaddus, Jr.

Charles Freedman discusses transparency in the conduct of monetary policy from three perspectives: why central banks have chosen to become more transparent, measures taken by the Bank of Canada to increase transparency, and issues regarding “Are there limits to what should be made public?” Václav Klaus’s remarks reflect his political experience in the Czech Republic during the past decade, after the fall of communism. He notes that although transparency is undoubtedly a positive feature, the quality of the monetary regime and the way in which monetary policy reflects the preferences of society are more relevant issues. J. Alfred Broaddus Jr. discusses how the Fed has made considerable progress in increasing transparency in recent years.