Central Bank communication and monetary policy - a survey of theory and evidence

Alan S. Blinder, Michael Ehrmann (), Marcel Fratzscher (), Jakob de Haan () and David-Jan Jansen ()

No 898, Working Paper Series from European Central Bank

Abstract: Over the last two decades, communication has become an increasingly important aspect of monetary policy. These real-world developments have spawned a huge new scholarly literature on central bank communication — mostly empirical, and almost all of it written in this decade. We survey this evergrowing literature. The evidence suggests that communication can be an important and powerful part of the central bank’s toolkit since it has the ability to move financial markets, to enhance the predictability of monetary policy decisions, and potentially to help achieve central banks’ macroeconomic objectives. However, the large variation in communication strategies across central banks suggests that a consensus has yet to emerge on what constitutes an optimal communication strategy. JEL Classification: E52, E58.

Keywords: communication; central bank; monetary policy. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba and nep-mon
Date: Written 2008-05
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Related works:
Working Paper: Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence (2008)
Working Paper: Central Bank Communication and Monetary Policy: A Survey of Theory and Evidence (2008)
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