Evo­lu­tion in cen­tral bank com­mu­ni­ca­tions vi­tal: Janet

The Pak Banker - - Front Page -

CAL­I­FOR­NIA

Ms Janet L Yellen, Vice Chair of the Board of Gov­er­nors of the Fed­eral Re­serve Sys­tem ad­dress­ing the Haas School of Busi­ness, Univer­sity of Cal­i­for­nia, Berke­ley, Berke­ley said my sub­ject is the re­cent rev­o­lu­tion and con­tin­u­ing evo­lu­tion in com­mu­ni­ca­tion by cen­tral banks.

All of us, of course, live in an era of rev­o­lu­tion­ary ad­vances in com­mu­ni­ca­tion: If I suc­ceed in say­ing any­thing in­ter­est­ing this af­ter­noon, those words may be posted, tweeted, and blogged about even be­fore I’ve left this podium. So, it might seem un­sur­pris­ing that the

Fed­eral Re­serve, too, is bol­ster­ing its ef­forts at com­mu­ni­ca­tion. But the rev­o­lu­tion in cen­tral bank com­mu­ni­ca­tion is not driven by tech­no­log­i­cal ad­vances. Rather, it is the prod­uct of ad­vances in our un­der­stand­ing of how to make mon­e­tary pol­icy most ef­fec­tive. A grow­ing body of re­search and ex­pe­ri­ence demon­strates that clear com­mu­ni­ca­tion is it­self a vi­tal tool for in­creas­ing the ef­fi­cacy and re­li­a­bil­ity of mon­e­tary pol­icy.

In fact, the chal­lenges fac­ing our econ­omy in the wake of the fi­nan­cial cri­sis have made clear com­mu­ni­ca­tion more im­por­tant than ever be­fore. To­day I’ll dis­cuss the rev­o­lu­tion in think­ing about cen­tral bank trans­parency and how, pushed by the unique sit­u­a­tion pre­cip­i­tated by the fi­nan­cial cri­sis, the Fed­eral Re­serve has re­sponded with fun­da­men­tal ad­vances in com­mu­ni­ca­tion. In­deed, I hope that one of the lega­cies of this dif­fi­cult pe­riod is a per­ma­nent and sub­stan­tial ad­vance in Fed­eral Re­serve trans­parency, build­ing on the poli­cies I’ll talk about shortly.

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