Economic Themes (2008) 46 (1) 9, 105-123


Borivoje D. Krušković

Abstract: Communication and transparency of the central bank are intertwined. The most important means of communication is an Inflation Report. It is used to explain the aims of monetary policy (inflation rate in medium-term time period), macroeconomic conditions which determine this monetary policy, instruments used to realize targeted inflation rate, possible limits to monetary policy, as well as reasons for potential divergence from the aim.

Keywords:  central bank communication; transparency; monetary strategy; inflation targeting

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