The function of central bank's communication: From dogma to argumentation in the virtual times

Abstract

Communication is one of the important instruments for conducting a central bank's policy. The recent financial crisis and the development of communication technology have made central banks face some new challenges: communication with the market versus communication with political stakeholders; transferring the message versus participating in the public discourse; and balancing between short-term and long-term focus. The significance of a consistent message has remained the same, but the context in which a message is sent and received has drastically changed, having resulted in non-homogenous target groups, versatile communication genres, and the public discourse media unused so far. Today, a central bank communicates beyond the narrow circle of economic experts, and against the constant attempts at simplification and exaggeration for the purpose of making things look spectacular. The fact that communication takes place in a multi-lingual context adds to the complexity of communication. The debate on essential issues has to be anticipated; arguments and key messages have to be conveyed in a clear, consistent and responsible manner, resorting to the new potential granted by modern means of communication.