A proposal for the inflation targeting communication strategy of the Bank of Albania

Nervaj, Erinda and Kaso, Rigers and Kraja, Ina and Lama, Doriana and Peeters, Marga (2006): A proposal for the inflation targeting communication strategy of the Bank of Albania. Published in: Inflation Targeting 2 Round Table (16 July 2007): pp. 151-191.

Abstract

This Discussion Paper defines the Communication Strategy for Inflation Targeting of the Central Bank of Albania as the objective of increasing and reaching the (full) awareness of the public on monetary policy issues, in general, and Inflation Targeting, in particular. The Paper distinguishes between the period before and after the official launch of this monetary policy framework in discussing the tactics of this strategy. A gradual launch of IT is proposed and an intensive dialogue of the central bank with the different target groups in the society on promoting price stability as a necessary condition for a sustainable economic growth. The Paper further proposes the monitoring of the public’s perception for steering its policy better. It unfolds furthermore the BoA’s plans for the next two years.

• Item Type: MPRA Paper
• Language: English
• Keywords: central bank; inflation targeting; communication; price stability
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness

References

Amata, Jeffrey D., Stephen Morris and Hyun Song Shin, 2003, Communication and Monetary Policy, BIS Working Papers, No. 123

Bank of Albania, 2006, Manuscript of the Open Forum on the Preconditions for Inflation Targeting in Albania, held December 1-2, 2005

Bernanke, Ben, 2004, Communication?, Fedspeak. BIS review 2/2004

Blinder, Alan, Charles Goodhart, Philipp Hildebrand, David Lipton and Charles Wyplosz, 2001, How do central banks talk?, Geneva Report on the World Economy, No. 3, Geneva/London ICMB/CEPR

Blinder, Alan and Charles Wyplosz, 2004, Central Bank Talk: Committee Structure and Communication Policy

Çeliku, Evelina, Diana Shtylla, Gent Hashorva, Rajna Hoxholli and Vasilika Kota, 2006, Inflation Forecasting at the Central Bank of Albania, Internal Discussion Paper

Center for Latin American Monetary Studies (CEMLA) - Central Bank communication group, March 2004, Code of Principles and Best Practices in Central Bank Communication

Dushku, Elona, Vasilika Kota and Gëzim Binaj, 2006, A Macro-Econometric Model Approach for Albania, Preliminary Discussion Paper

Ilirjani, Altin and Evan Parker-Stephen, June 2006, Globic Opinion Poll # 2: Albanian Public Opinion, Chapel Hill, NC, USA, available on the world wide web

Luçi, E., M. Gjermeni and A,. Gazidede, 2006, Coordination between the Central Bank and the Ministry of Finance under Inflation Targeting, Discussion Paper for the Round Table on Inflation Targeting 2

Lybek, Tonny, 1999, Central Bank Autonomy, and Inflation and Output Performance in the Baltic States, Russia, and Other Countries of the Former Soviet Union, 1995-97, IMF Working Paper WP/99/4

Note, Sofika, 2005, The Transparency of the Bank of Albania, Discussion Paper (in Albanian) and in the Proceedings of the Workshop on Monetary Issues and Inflation Forecasting, January 2005

Shtylla, D. and E. Suljoti, 2006, The Transition from the Monetary Policy Report to the Inflation Report at Bank of Albania, Discussion Paper for the Round Table on Inflation Targeting 2

Smart, Graham, 2000, A Central Bank’s “Communications Strategy”: The Interplay of Activity, Discourse Genres, and Technology in a Time of Organizational Change