Communication strategies too weak to ‘pierce veil of inattention’ – research
Survey evidence is too poor and central bank communication too ineffectual at present, say economists
Central banks are not skilful enough communicators to treat the management of inflation expectations as a viable policy tool, according to recent research.
Olivier Coibion, Yuriy Gorodnichenko, Saten Kumar and Mathieu Pedemonte argue that while financial market expectations have been well anchored by central bank communications since the 1990s, “this is unambiguously not the case when it comes to households and firms”.
In a new working paper, they say current survey data on expectations is too
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