We present updated estimates of central bank transparency for 100 countries up through 2006 and use them to analyze both the determinants and consequences of monetary policy transparency in an integrated econometric framework. We establish that there has been significant movement in the direction of greater central bank transparency in recent years. Transparent monetary policy arrangements are more likely to be found in countries with strong and stable political institutions. They are more likely to be found in democracies, with their (...) culture of transparency. Using these political determinants as instruments for transparency, we show that more transparency in monetary policy operating procedures is associated with less inflation variability, though not also with less inflation persistence. (shrink)

Our aim in this article is to analyze Turkey’s Readmission Agreement with the EU in light of Turkey’s membership goal. More specifically, our aim is to propose the most rational political decision for concluding this process. Our study addresses three questions: the impact of the Readmission Agreement on Turkey’s accession negotiations; the outcomes of the implementation of the Readmission Agreement for Turkey; and Turkey’s aim of becoming a full member of the EU by concluding the Agreement. By assessing the three (...) potential scenarios of the Readmission Agreement process—minimum, optimum, and maximum benefit—we conclude that, whereas the first scenario does not coincide with our analysis, the other two, especially the third scenario, do coincide with it. Because the optimum benefit scenario does not disrupt the Readmission Agreement process it appears to be the most rational, balanced and beneficial agreement for both Turkey and the EU. (shrink)