Clear, Consistent and Engaging: ECB Monetary Policy Communication in a Changing World

91 Pages Posted: 23 Sep 2021 Last revised: 19 Jan 2022

See all articles by Katrin Assenmacher

Katrin Assenmacher

European Central Bank (ECB)

Gabriel Glöckler

European Central Bank (ECB)

Sarah Holton

European Central Bank (ECB)

Peter Trautmann

Deutsche Bundesbank

Demosthenes Ioannou

European Central Bank (ECB)

Simon Mee

European Central Bank (ECB)

Klara Bakk-Simon

European Central Bank (ECB)

Stephanie Bergbauer

European Central Bank (ECB) - Directorate General International and European Relations

Marco Catenaro

European Central Bank (ECB)

Evangelos Charalampakis

European Central Bank (ECB)

Michael Ehrmann

European Central Bank (ECB); Bank of Canada

Giuseppe Ferrero

Bank of Italy

Dimitris Georgarakos

European Central Bank (ECB) - Directorate General Research; Center for Financial Studies (CFS)

Pavel Gertler

Národná banka Slovenska

Alessandro Giovannini

European Central Bank (ECB) - Directorate General International and European Relations

Roel Grandia

European Central Bank (ECB)

Nils Hernborg

European Central Bank (ECB)

Niko Herrala

European Central Bank (ECB)

Danielle Kedan

European Central Bank (ECB)

Geoff Kenny

European Central Bank (ECB)

Tobias Linzert

European Central Bank (ECB)

Marta Manrique

Banco de España

Ricardo Mestre

European Central Bank (ECB)

Emanuel Moench

Frankfurt School of Finance and Management

Stefano Nardelli

European Central Bank (ECB)

Nele Nomm

European Central Bank (ECB)

Lora Pavlova

Deutsche Bundesbank

Guido Schultefrankenfeld

Deutsche Bundesbank

Maria Silgoner

Oesterreichische Nationalbank (OeNB)

Ifigeneia Skotida

Bank of Greece

Bernhard Winkler

European Central Bank (ECB)

Marie Therese Bitterlich

European Central Bank (ECB)

Eleni Argiri

Bank of Greece

Conception Alonso

European Central Bank (ECB)

Jennifer Byron

European Central Bank (ECB)

Filippo Arigoni

Bank of Slovenia

Marjolein Deroose

National Bank of Belgium

Marius Gardt

European Central Bank (ECB)

Klodiana Istrefi

Banque de France

Olga Goldfayn-Frank

Goethe University Frankfurt; Deutsche Bundesbank

Jenni Hellström

Bank of Finland

Patrick Huertgen

Deutsche Bundesbank

Krista Kalnberzina

Latvijas Banka

Georgi Kocharkov

Deutsche Bundesbank; Goethe University Frankfurt - House of Finance

Víctor Márquez

Banco de España

Corina Ruhe

De Nederlandsche Bank

Martin Šanta

Národná banka Slovenska

Reet Reedik

Bank of Estonia

Geert Sciot

National Bank of Belgium

Aliki Stylianou

Central Bank of Cyprus

Eva Taylor

European Central Bank (ECB)

Date Written: September, 2021

Abstract

This paper examines the importance of central bank communication in ensuring the effectiveness of monetary policy and in underpinning the credibility, accountability and legitimacy of independent central banks. It documents how communication has become a monetary policy tool in itself; one example of this being forward guidance, given its impact on inflation expectations, economic behaviour and inflation. The paper explains why and how consistent, clear and effective communication to expert and non-expert audiences is essential in an environment of an ever-increasing need by central banks to reach these audiences. Central banks must also meet the demand for more understandable information about policies and tools, while at the same time overcoming the challenge posed by the wider public’s rational inattention. Since the European Central Bank was established, the communications landscape has changed dramatically and continues to evolve. This paper outlines how better communication, including greater engagement with the wider public, could help boost people’s understanding of and trust in the Eurosystem.

Keywords: accountability, central bank, forward guidance, transparency, trust

JEL Classification: E43, E52, E58

Suggested Citation

Assenmacher, Katrin and Glöckler, Gabriel and Holton, Sarah and Trautmann, Peter and Ioannou, Demosthenes and Mee, Simon and Bakk-Simon, Klara and Bergbauer, Stephanie and Catenaro, Marco and Charalampakis, Evangelos and Ehrmann, Michael and Ferrero, Giuseppe and Georgarakos, Dimitris and Gertler, Pavel and Giovannini, Alessandro and Grandia, Roel and Hernborg, Nils and Herrala, Niko and Kedan, Danielle and Kenny, Geoff and Linzert, Tobias and Manrique, Marta and Mestre, Ricardo and Moench, Emanuel and Nardelli, Stefano and Nomm, Nele and Pavlova, Lora and Schultefrankenfeld, Guido and Silgoner, Maria and Skotida, Ifigeneia and Winkler, Bernhard and Bitterlich, Marie Therese and Argiri, Eleni and Alonso, Conception and Byron, Jennifer and Arigoni, Filippo and Deroose, Marjolein and Gardt, Marius and Istrefi, Klodiana and Goldfayn-Frank, Olga and Hellström, Jenni and Huertgen, Patrick and Kalnberzina, Krista and Kocharkov, Georgi and Kocharkov, Georgi and Márquez, Víctor and Ruhe, Corina and Šanta, Martin and Reedik, Reet and Sciot, Geert and Stylianou, Aliki and Taylor, Eva, Clear, Consistent and Engaging: ECB Monetary Policy Communication in a Changing World (September, 2021). ECB Occasional Paper No. 2021/274, Available at SSRN: https://ssrn.com/abstract=3928296

Katrin Assenmacher (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Gabriel Glöckler

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Sarah Holton

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Peter Trautmann

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Demosthenes Ioannou

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Simon Mee

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Klara Bakk-Simon

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Stephanie Bergbauer

European Central Bank (ECB) - Directorate General International and European Relations ( email )

Kaiserstrasse 29
D-60311 Frankfurt am Main
Germany

Marco Catenaro

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Evangelos Charalampakis

European Central Bank (ECB)

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Michael Ehrmann

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
+49 69 1344/7327 (Phone)
+49 69 1344/6000 (Fax)

Bank of Canada ( email )

234 Wellington Street
Ontario, Ottawa K1A 0G9
Canada

Giuseppe Ferrero

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Dimitris Georgarakos

European Central Bank (ECB) - Directorate General Research ( email )

Sonnemannstrasse 20
Frankfurt am Main, 60314
Germany

Center for Financial Studies (CFS) ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Pavel Gertler

Národná banka Slovenska

Bratislava
Slovakia

Alessandro Giovannini

European Central Bank (ECB) - Directorate General International and European Relations ( email )

Kaiserstrasse 29
D-60311 Frankfurt am Main
Germany

Roel Grandia

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Nils Hernborg

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Niko Herrala

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Danielle Kedan

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Geoff Kenny

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Tobias Linzert

European Central Bank (ECB)

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Marta Manrique

Banco de España

Alcala 50
Madrid 28014
Spain

Ricardo Mestre

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
0049 69 13440 (Phone)
0049 69 1344 6000 (Fax)

Emanuel Moench

Frankfurt School of Finance and Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

Stefano Nardelli

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Nele Nomm

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Lora Pavlova

Deutsche Bundesbank

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Guido Schultefrankenfeld

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Research Centre
Frankfurt/Main, DE Hesse 60431
Germany

HOME PAGE: http://www.bundesbank.de/research_guido_schultefrankenfeld

Maria Silgoner

Oesterreichische Nationalbank (OeNB)

Otto-Wagner-Platz 3, PO Box 61
Vienna,
1010 Vienna, A-1011
Austria

Ifigeneia Skotida

Bank of Greece

21 E. Venizelos Avenue
GR 102 50 Athens
Greece

Bernhard Winkler

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Marie Therese Bitterlich

European Central Bank (ECB)

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Eleni Argiri

Bank of Greece ( email )

21 E. Venizelos Avenue
GR 102 50 Athens
Greece

Conception Alonso

European Central Bank (ECB)

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Jennifer Byron

European Central Bank (ECB)

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Filippo Arigoni

Bank of Slovenia ( email )

Slovenska cesta 35
Slovenija, 1505
Slovenia

Marjolein Deroose

National Bank of Belgium

Brussels, B-1000
Belgium

Marius Gardt

European Central Bank (ECB)

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Klodiana Istrefi

Banque de France ( email )

Paris
France

Olga Goldfayn-Frank

Goethe University Frankfurt ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Jenni Hellström

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

Patrick Huertgen

Deutsche Bundesbank

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Krista Kalnberzina

Latvijas Banka

Riga
Latvia

Georgi Kocharkov

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Strasse 14
Frankfurt/Main D-60431
Germany

Goethe University Frankfurt - House of Finance ( email )

Grüneburgplatz 1
Frankfurt am Main, DE 60323
Germany

Víctor Márquez

Banco de España

Alcala 50
Madrid 28014
Spain

Corina Ruhe

De Nederlandsche Bank

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Martin Šanta

Národná banka Slovenska

Bratislava
Slovakia

Reet Reedik

Bank of Estonia

Estonia Building 13
15095 Tallinn
Estonia

Geert Sciot

National Bank of Belgium

Brussels, B-1000
Belgium

Aliki Stylianou

Central Bank of Cyprus

80 Kennedy Ave
1076 Nicosia
Cyprus

Eva Taylor

European Central Bank (ECB)

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
92
Abstract Views
227
rank
373,771
PlumX Metrics