Language, Expectations, and Circumstances
Elke Muchlinski ()
Chapter 5 in Central Banks and Coded Language, 2011, pp 199-223 from Palgrave Macmillan
Abstract In this chapter I would like to provide an introduction to language as opposed to a coded language. This chapter tries to show why understanding matters to central banking. According to modern central bank literature, the genuine task of a central bank is to steer market expectations. Since expectations and the expectation-building process are not to be regarded as mental states but rather as articulations (utterances) configured by language-based interactions in different circumstances, central bank talks matter. However, expectations are neither linearly determined causal responses to stimuli nor causal connections to disclosed information. Economics, as a social science and as institutionalized procedure, is not based on causality as is typical for mechanical stimulus-responses. This is also true regarding understanding.
Keywords: Monetary Policy; Financial Market; Central Bank; Code Word; Picture Theory (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-30596-0_6
Ordering information: This item can be ordered from
Access Statistics for this chapter
More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().