The importance of central banks’ committees and communication strategies in assessing the paths’ of monetary policy

Abstract

Nowadays it is very important the ways and the channels central banks’ communicate. There are two issues regarding this aspect: first, if and how the communication strategies differ regarding the future monetary policy decisions and the decision making process; second, evaluating the communication efficiency due to the possibility offered to the financial markets to anticipate the monetary policy decisions and that’s of a central bank to influence in a specific and important manner the asset prices in the desired direction. The central argument lies in the importance of the needed distinction between the words the committee members say, the way they communicate and the effective action – how they vote regarding the monetary policy decisions.