Central banks must be transparent about their objectives

If central banks were not transparent about their objectives, they would generate forecasting errors for economic agents, which would then lead to significant losses for these economic agents. So transparency on objectives is a very desirable feature of central bank behaviour, and it is therefore very likely that they want to be transparent on this point. This implies that financial markets believe central banks when they say that they want to achieve their target (2% inflation, except in Japan), which is clearly not the case in the euro zone or in the United Kingdom where expected monetary policy will be unable to bring inflation back to 2% within a reasonable time frame .