Central bank communication during normal and crisis time

Christophe Blot (1) , Paul Hubert (1)

1 OFCE - Observatoire français des conjonctures économiques (Sciences Po)

Central banks have intensified their communication strategy since the mid 1990’s and it has become an important instrument of central banks’ policymaking toolkit. A large empirical evidence suggests that central bank communication has effectively enhanced the transmission of monetary policy before and during the financial crisis. Nevertheless, the use of communication as a policy instrument is fragile since it depends on economic agents’ perceptions and beliefs. It is crucial that central bank communication be consistent with policy decisions.

Keywords: ECB; Communication; Monetary policy

Domains: Humanities and Social Sciences; Economics and Finance

Christophe Blot, Paul Hubert. Central bank communication during normal and crisis time. [Research Report] European Parliament. 2018, pp.22. ⟨hal-03404315⟩