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5 - Central Bank Communication

Never Excuse, Never Explain

from II - Communication

Published online by Cambridge University Press:  14 November 2024

By
Stephen Millard
Edited by
Sean Holly ,
Michael McMahon ,
Stephen Millard  and
Anna Watson
Sean Holly
Affiliation:
University of Cambridge
Michael McMahon
Affiliation:
University of Oxford
Stephen Millard
Affiliation:
National Institute of Economic and Social Research
Anna Watson
Affiliation:
University of Cambridge
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Summary

For most of the 20th century and earlier, central banks went about their business without ever feeling the need to communicate what they were doing to the financial markets or the general public. Then from around 1990 onwards, central banks became ever more transparent, trying to make clear to the markets and the public what they were doing and why. The purpose of this chapter is to understand why this change came about and how successful it has been.

Keywords

Transparencycommunicationforward guidance
Type
Chapter
Information
Reflections on Monetary Policy after 25 Years of the MPC , pp. 70 - 76
Publisher: Cambridge University Press
Print publication year: 2024

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References

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Greenspan, Alan (2007), The Age of Turbulence. Penguin Press.Google Scholar
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