Central Bank Communications: A Comparative Study

Central bank communication has increased significantly over the past two decades and has continued to evolve since the onset of the financial crisis. We first discuss the theoretical and empirically measured merits of central bank transparency. We then survey the communication practices of central banks in ten advanced economies, comparing and contrasting their frameworks across press conferences and statements, the publication of minutes and transcripts, the horizon and scope of the forecasts that they publish and the use of forward guidance in its various forms. While the survey provides a snap shot of central banks’ communications at a point in time, where possible we place this in the context of the changing communication environment following the crisis. The authors work in the Monetary Policy Division. The views expressed are those of the authors and are not necessarily shared by the Central Bank of Ireland or the ESCB. The authors would like to thank John Flynn, Stefan Gerlach and Gillian Phelan for helpful comments.