Bacen and selected Central Banks: comparative analysis of the transparency degree

ABSTRACT This paper compares the degree of transparency of the Brazilian Central Bank (Bacen) with the one verified in other selected Central Banks (CBs). Following the methodology developed in Hann and Eijffinger (2000), we constructed an indicator for transparency based on: (i) how clear the CBs are with respect to their monetary policy objectives, and (ii) how transparent the CBs implement their monetary policy. The Bacen has become more transparent after adopting the inflation targeting regime in 1999. However, these more transparent procedures are not part of the law that regulates the Bacen, indicating that they can be easily replaced.