Over the past few years, we’ve come a long way in terms of central bank transparency, albeit with fairly mixed results. It’s far from clear whether decision-making has been improved, or financial market volatility and uncertainty reduced.
If anything, greater transparency has perhaps undermined the credibility of central banks in the eyes of the public, as it has exposed that they’re generally no better at forecasting economic trends than anyone else.
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David Bassanese is chief economist at BetaShares Exchange Traded Funds. He writes on markets specialising in debt, derivatives and monetary policy. He worked at the federal Treasury, OECD and Macquarie Bank. Connect with David on Twitter.
