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Second of all, transparency might not necessarily be reached at by just simply increasing the quantitative disclosures. In the words of Federal Reserve Chairman Alan Greenspan: 'A more complex question is whether greater volume of information has led to comparable improvements in transparency of firms. In the minds of some, public disclosure and transparency are interchangeable. But they are not. Transparency challenges market participants not only to provide information but also to place that information into a context that makes it meaningful' (Greenspan 2003, p. 7).11

Third, disclosure is costly. Clearly, 'requiring disclosure of information imposes a cost on banks, as on any firm, and this cost must be offset by resulting benefits for it to be justified' (Schaffer 1995, p. 26).12 Publishing information and producing information are some of the direct cost involved in the cost of disclosure, even though these are the direct cost involved, when a bank publishes its information in the financial market, there arises a threat of its competitors exploiting the information which might result in indirect cost.

Cukierman and Meltzer (1986) eminent economists developed concept of central bank transparency13. Bankers, mainly the central banks use of monitory policy control was in great fault or imperfect in order to hide their intentions. In other words, the absence of transparency with control error was evident to meet the central banks objective, at least possible reputation cost. More recently, with the setup from the Cukierman and Meltzer, Faust and Svensson (1999) was able to differentiate more between transparency and control error. Central bank chose the pair that maximizes it objective and it was to be opaque.

There are still some argument that incomplete transparency is optimal, as by being incomplete optimal, the central bank's ability to control inflation has to be balanced against the private sectors wish to see price stability, employment and output.(see for example Faust and Svensson, 2001 or Jensen, 2000). Others argue that for operational reasons, it is important to have certain restrictions on transparency. The main idea behind this is to differentiate between the 'need to know' (see Eijffinger and Hoeberichts, 2002) and 'the need to understand' factor (Issing, 1999) and to reinforce the Bank's credibility.

There are yet more evidence of central bank being transparent and central bank transparency being one of the important feature of monetary policy, which is been recorded in one of the most comprehensive survey being conducted till date on monitory policy of central bank. It's been recorded in the 1998 survey of 94 central banks by Fry, Julius, Mahadeva, Roger and Sterne (2000). This survey discloses that about 74% of central banks consider transparency as a vital or very important component of their monetary policy framework, only exceeded by central bank independence and the maintenance of low inflation expectations (with 83% and 82%, respectively; Fry et al. (2000, p. 135)). Subsequently, the relevance of transparency have only increased when certain changes are being done by central bank.

分析-Analysis

According to one of the famous journalist, Caroline A. Baum, she says that from the phrase given by Alan Greenspan, the U.S. Federal Reserve chairman, the resources are being used up at the sa