Policy forecasts: a new frontier in communication

The days of monetary-policy making being shrouded in mystery are long gone. The move to clearer communication has been wholeheartedly embraced by most members of the central banking community; most policymakers and academics now view central bank transparency as essential. The independence of modernday central banks makes democratic accountability a necessity. And, most importantly, monetary policy benefits.

Greater disclosure and clarity over monetary policy may lead to greater predictability o