Communication has to be two-way – ECB’s de Guindos

Luis de Guindos
Luis de Guindos
World Economic Forum/Boris Baldinger

Central banks need to establish two-way communications with markets and the general public, but need to wary of an “echo chamber effect”, Luis de Guindos said today (August 27).

The European Central Bank vice-president said central banks must talk to markets and listen at the same time. Communications can help achieve central bank policy, but central banks also benefit from picking up signals from the market.

However, challenges emerged because markets adapt to central bank communications

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