Transparency under Flexible Inflation Targeting – Abstract


Lars E.O. Svensson
Sveriges Riksbank,
Princeton University,

First version: August 2008
This version: February 2009
Riksbank Economic Review 1/2009, 5-44.

I report some personal views and reflections on transparency experiences and transparency challenges following my first year as Deputy Governor at Sveriges Riksbank regarding (1) flexible inflation targeting, (2) the role of transparency in inflation targeting, committee decisions on instrument-rate paths, (3) the management of interest-rate expectations, and (4) the publishing of attributed minutes.  I also mention some future developments and improvements in transparency and flexible inflation targeting that I believe would be desirable.

JEL Classification: E52, E58

Keywords: Transparency, flexible inflation targeting, optimal monetary policy, interest-rate paths.