01788cas a2200241 a 4500 AALejournalIMF009171 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865493 1018-5941 BD-DhAAL BD-DhAAL Crowe, Christopher. Testing the Transparency Benefits of Inflation Targeting : Evidence from Private Sector Forecasts / Christopher Crowe. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students I test whether inflation targeting (IT) enhances transparency using inflation forecast data for 11 IT adoption countries. IT adoption promotes convergence in forecast errors, suggesting that it enhances transparency. This effect is robust to dropping observations, is strengthened by using instrumental variable estimation to eliminate mean-reversion, and is absent in placebo regressions (where IT adoption is shifted by a year). This result supports Morris and Shin's (2002) contention that better public information is most beneficial for forecasters with bad private information. However, it does not support their hypothesis that better public information could make private forecasts less accurate. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2006/289 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/289/001.2006.issue-289-en.xml IMF e-Library