Work detail

The Determinants of central banking transparency: An Empirical Analysis

Author: Mgr. Tomáš Ulrich
Year: 2013 - summer
Leaders: prof. Roman Horváth Ph.D.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 79
Awards and prizes:
Link:
Abstract: This thesis examines the central banking transparency and financial stability
communication. The main goal is to find the determinants of the updated
Monetary policy transparency index and the index for financial stability transparency,
which cover 110 countries during the period 2000-2011. We analyse the
individual components of transparencies and perform regression models with
the set of economic and political variables in order to find drivers of all aspects
of transparency. As a basic observation we verified the increasing trend in both
types of transparencies during last two decades. We found out that economically
well developed countries with flexible exchange rates, quality government
and stable political institutions tend to be more open about their monetary
policies. Moreover, high degree of monetary policy transparency and the occurance
of past systemic banking crisis implies higher openness of central banks
about financial stability issues. The drivers of Financial stability transparency
index components display significant variations, especially variables like rule
of law or past financial distress. It is concluded that financial stability transparency
is still a young field of study and many central banks are still in the
developing phase of learning.

Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance