Why the Fed should be more opaque

Is it bad for central banks to be too transparent?

It almost sounds like an overprotective mum's harangue, but a senior official at Moody's is now warning too much transparency on the part of central banks could prove counterproductive to policy intentions.

Instead, central bankers need to adopt ôa selective use of transparencyö if they want to maximize outcomes stemming from their operations, argues Tony Hughes, MoodyÆs Economy.comÆs director of Asia-Pacific economics. Moody's Corporation acquired Economy.com for $27 million in November 2005

He points to Japan and the United States...

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