Monetary Policy Transparency and Policy Efficiency:An Analysis Based on Expectation Theory of the Term Structure

The expectations theory of the term structure of CHIBOR is analyzed for explaining the relationship of monetary policy transparency and policy efficiency.The result shows that the expectation hypothesis performed better along with the increased monetary policy transparency;moreover,the preferable term structure of interest rate should help monetary policy transmit more effectively.The conclusions are consistent with the view that open disclosure of central bank will increase the efficiency of the monetary policy.