Deciphering the links: evaluating central bank transparency impact on corruption perception index in G20 countries

Six Practical Views of Central Bank Transparency

The study estimates the long-run dynamics of a cleaner environment in promoting the gross domestic product of E7 and G7 countries. The recent study intends to estimate the climate change mitigation factor for a cleaner environment with the GDP of E7 countries and G7 countries from 2010 to 2018. For long-run estimation, second-generation panel data techniques including augmented Dickey-Fuller (ADF), Phillip-Peron technique and fully modified ordinary least square (FMOLS) techniques are applied to draw the long-run inference. The results of the study are robust with VECM technique. The outcomes of the study revealed that climate change mitigation indicators significantly affect the GDP of G7 countries than that of E7 countries. The GDP of both E7 and G7 countries is found depleting due to less clean environment. However, green financing techniques helps to clean the environment and reinforce the confidence of policymakers on the elevation of green economic growth in G7 and E7 countries. Furthermore, study results shown that a 1% rise in green financing index improves the environmental quality by 0.375% in G7 countries, while it purifies 0.3920% environment in E7 countries. There is a need to reduce environmental pollution, shift energy generation sources towards alternative, innovative and green sources.The study also provides different policy implications for the stakeholders guiding to actively promote financial hedging for green financing. So that climate change and envoirnmental pollution reduction could be achieved effectively. The novelty of the study lies in study framework.

Evidence of the evolution of ideas on central bank transparency can be found in the central bankers’ speeches during the period 1997-2012. Exploratory analysis of the central bankers’ speeches provides an overview of their use of language: speeches define the historical evolution of central banks’ discourses, and thus suggest how the concept of transparency has evolved. The paper invites reconsideration of the role of central banks’ transparency through analysis of central bankers’ speeches and their use of language as a part of their communication framework. While literature on transparency indexes shows increasing central bank transparency, the semantic area of transparency in central bankers’ speeches changed over the period 1997-2012. The paper investigates this evolution until recent shift towards new semantic areas pertaining more to the financial and real economy than to traditional inflation concerns. Jel Classification: B59, E58

This paper summarizes the arguments and counterarguments within the scientific discussion on the central bank independence and central bank transparency interaction. he main purpose of the research is to define the substantial relationships between central banks’ independence and transparency based on scientific research results. Systematization literary sources and approaches for the definition of the central bank's independence and transparency indicate that there is no generalized approach to the hierarchy of these concepts. Existing empirical studies have shown that the independence and transparency of the central bank can be interconnected components to increase the effectiveness and flexibility to solve tasks regarding the provision of currency stability and financial stability in general. Methodological tools of the research methods are Google Trends and VOSviewer instruments. The presented results of an empirical analysis of trends regarding the dynamics of the search query number by the keywords “central bank independence” and “central bank transparency” show a decrease from 2004 to the present, with a significant predominance of central bank independence over transparency throughout the study period. The results of bibliometric analysis of keyword coincidence while writing scientific articles show that researchers of the central bank independence very rarely link its solution with the transparency aspects study, while researchers of central bank transparency often study this problem in direct connection with their independence analysis. Along with this, the issues of transparency of central banks are often studied simultaneously with the analysis of their independence. The research empirically confirms and theoretically proves that the central bank’s independence is the primary category that creates the conditions for the study of its transparency. The study results provide a scientific ground to study the strength and direction of the relationship between the levels of transparency and independence of the central bank, identifying quantitative indicators to describe these relationships and can be useful for further research to ensure the central bank efficiency. Keywords: Bibliometric Analysis, Central Bank, Coincidence, Google Trends, Independence, Interaction, Transparency, VoSviewer.

The very purpose of this study is to review the credibility of the Somali central bank: its independence, transparency, and accountability. The reason why, this study was conducted is that there was no previous study in its kind regarding the credibility of the central bank of Somalia by looking at its independence, transparency and accountability. The first objective of this study is to find out if central bank of Somalia is credible in terms of political, financial, and monetary policy independence. The second objective is to examine the types and degree of transparency and to settle ways to measure the transparency of the Somali central bank. The third objective is to find out if there are clear and well defined financial accountability structures in the central bank (CB) of Somalia. In this study, central bank independence (CBI), transparency, and accountability was measured to find out whether these elements can influence or possibly could have some positive effects on central bank credibility. The questionnaire used in this research is a self-administered dichotomous scale. Data was analyzed by using Statistical package for social sciences (SPSS) in descriptive statistics. The target population of this study was 32 respondents from the banking industry in Mogadishu. The result of this study became 55.78 mean averages with a Std. Dev. 5.235. The overall mean averages for a total of 30 questions became 1.859 and overall Std. Dev. 0.1745 which meant the result showed greater abnormality and data distribution positively skewed to the right. The central bank of Somalia has no independence.

This article extends the Dincer and Eichengreen (2007) index of central bank transparency. Improvements in transparency are notable in Central and Eastern Europe, whereas the index has shown much smaller rises in most other parts of the world. The pattern observed by Dincer and Eichengreen, consistent with a permanent increase in central bank transparency, is also evident in the updated results. The dramatic enhancements in central bank transparency reported earlier appear to be a feature of the late 1990s and the early 2000s. Whether the subsequent data reflect limits to central banks' transparency or, to some extent, transparency ‘fatigue’ is unclear.

Environmental control remains a salient aspect of states’ policies in the present decade. To reduce emissions, governments and central banks tend to adopt various strategies. The present research quantifies the nexus between fiscal and monetary policy, institutions’ quality, central bank characteristics, and carbon dioxide and greenhouse gas emissions. Data has been sourced from 95 countries during the period from 1998 to 2019. According to the empirical results, the main determinants of gas emissions in developing countries are economic growth, government expenses, and central bank independence, whereas, in developed countries, they are economic growth, government efficiency, and central bank transparency and independence. Economic growth is a significant deteriorating factor in the state of the environment. By contrast, institutional and bureaucratic quality, measured through government effectiveness and expansionary fiscal policies as well as central bank independence and transparency, are ameliorating factors, as they decrease emissions. To conclude, governments must first reduce control over central banks and target government spending on the energy transition.

This paper studies the manner in which central bank transparency has been implemented in Indonesia, and the impact of transparency on the central bank’s performance in achieving its goals. First, a normative analysis is conducted to seek the regulatory framework for central bank transparency. Secondly, a performance analysis is carried out to observe the extent to which central bank transparency has been implemented in Indonesia, and the impact it brings on the central bank’s performance in conducting monetary policy. Finally, an international practice analysis is performed to set a benchmark based on the manner in which transparency has been implemented by other central banks.

This study aims to provide a comprehensive analysis of the fiscal and monetary policies enacted by the G7 countries in the post-COVID-19 era, and to investigate their impact on economic recovery. This research is set amid the global disruption during the COVID-19 pandemic, which compelled governments around the world to enact unprecedented measures to stimulate economic activity and prevent financial collapse. The objective of our research analysis is to assess the efficacy of these policies in promoting economic recovery while considering the diverse strategies adopted across the G7 nations. The primary research content revolves around a comparative evaluation of monetary strategies—such as interest rate cuts and quantitative easing—and fiscal measures—such as direct payments, loan guarantees, and tax deferments. This study primarily relies on data sourced from major global agencies and central banks, which serve to quantify the effects of these policies on key economic indicators, such as GDP growth, employment rates, and inflation. The study also takes into account recent forecasts from the IMF and OECD, offering a nuanced view of the prospects for economic recovery among the G7 countries. This analysis can be useful in providing a deeper understanding of the complexities involved in policymaking at a macroeconomic level. The analysis identifies notable disparities in the economic recovery rates across G7 countries, which can be attributed to the variations in the scale, scope, and nature of their fiscal and monetary interventions. Consequently, the study offers valuable insights into the requisite policy calibrations necessary for more targeted and effective economic stimulation.

Central Bank Transparency and Independence: Updates and New Measures

Information asymmetries seem to play an important role in monetary economics. We consider three forms of information transmission which can be used to alleviate these information asymmetries. First, if information is verifiable or the publication of information is in the central bank's interest, it is possible for the central bank to alleviate information asymmetries by simply publishing information. This raises the question of the socially optimal degree of transparency in monetary policy. We review the rapidly growing literature on this topic. Then we present three models for evaluating whether the publication of the voting records of the central bank council is socially beneficial, when central bankers differ either with respect to their ability to identify shocks in the economy or with respect to their preferences. Using another simple model, we also examine the question of whether the transparency of the central bank's objectives is desirable from a social perspective. Second, information may not always be credible if it is not verifiable. From a normative viewpoint, this raises the question of the means best suited for information transmission in these cases. We consider monetary targeting and inflation targeting as signaling devices and evaluate their relative merits with respect to welfare when central banks may have superior information on shocks to money demand. Third, it is also possible that central banks may be less well-informed than other economic agents. Then one has to examine the reverse information-transmission process from these economic agents to the central bank. We analyze the strategic interaction between a number of unions and a central bank and evaluate whether the independent acquisition of information about real shocks by the central bank is in the interest of society.

Aims: The purpose of this study is to analyze the impact of Gross Domestic Product (GDP), Industry Value Added (IVA), Urban Population (UP), Trade, and Foreign Direct Investment (FDI) on Energy Intensity in G20 countries.
 Study Design: This research used a quantitative descriptive method using panel data analysis.
 Place and Duration of Study: The scope of this research extends to G20 member countries such as Argentina, Brazil, Canada, China, Germany, European Union, France, United Kingdom, Indonesia, India, Italy, Japan, Korea, Mexico, Rusia, Saudi Arabia, Turki, United States, and South Africa, between 1990-2021.
 Methodology: This research uses descriptive method combined with panel data analysis, analyze determine of GDP, IVA, UP, Trade, and FDI on Energy Intensity in G20 countries. Furthermore, the data uses is secondary data that has a regression model on panel data from 1990-2021.
 Results: The result of this research show that IVA has a positive relationship and has a significant effect on increasing energy intensity in G20 countries. GDP, Trade and UP variables have a negative relationship and have a significant effect on Energy Intensity in G20 countries. Meanwhile, the FDI variable has no significant effect on Energy Intensity in G20 countries.
 Conclusion: Based on research result, Energy Intensity in G20 countries is influenced by various factors, The IVA factor has a positive and significant relationship with energy intensity, can be utilized to increase productivity and economic growth, but need to be balanced with effort to increase energy efficiency.
 While the GDP, Trade and Urban Population factors have a negative and significant relationship to energy intensity. However, FDI does not have a significant effect on energy intensity in G20 countries. The government should consider policies to reduce dependence on intensive energy, especially in sector that have a negative relation with energy intensity such as GDP, trade and urban population.

Does central bank transparency affect stock market volatility?

In a unionized economy with endogenous fiscal policy central bank transparency has two contrasting effects on wages, the relative strength of which determines the macroeconomic performance. This finding allows us to demonstrate that (i) if the central bank is populist the effect of transparency is negative, and (ii) if policy makers are sufficiently conservative and the government is active, transparency decreases inflation and unemployment, but opposite results apply if a populist government faces a tight fiscal constraint. Macroeconomic volatility disappears with full transparency and increases, in general, with opacity, but the relationship is hump‐shaped when the central bank is strongly populist.

Research background: The previous studies on monetary policy transparency suggest that the dependence between the degree of transparency and monetary policy effectiveness exists. In this examination, we tackle this issue for the most recent sample with the application of novel transparency measure, which is de-signed to cover forward-looking policy approach.
 Purpose of the article: We aim at evaluating forward-looking transparency of the European central banks and juxtapose it with their effectiveness in achieving monetary policy goals: price stability and output stabilization. The sample covers the central banks of the following countries: Sweden, the UK, Czechia, Hungary, Poland, and Romania. We also search for the patters of similarity in our sample.
 Methods: We apply a novel, index-based transparency measure to assess central banks? transparency. We also estimate inflation gap and the output gap. The methods used are based on data and statistical analysis. The comparison of the behaviour of individual central banks is carried out for the variables measuring transparency and inflation and output gaps. The similarity of the performance of individual central banks is assessed with the use of measures of the distance between objects, including our own measure.
 Findings & Value added: Our results suggest the existence of different degrees of similarity in the sample, but some common tendencies can be found as well. For example, central banks with comparable transparency degree are found more similar. Novelty of the examination is related to our methodology: transparency and similarity measures applied and the most recent time span covered.