Communication, complexity and credibility of monetary policy

With growing complexity of monetary policy following the global financial crisis, communication gradually became mission-critical for central banks in order to preserve legitimacy and credibility. The public, legislators and financial market participants each require a different type and channel of communication. Looking forward, the aftermath of the COVID-19 crisis will bring considerable challenges for the European Central Bank (ECB)’s communication and accountability in the context of the complex and uncertain future interplay between price stability, financial stability and public debt sustainability in the euro area. Three papers were prepared by the ECON Committee’s Monetary Expert Panel on this topic. This publication is provided by Policy Department A for the Committee on Economic and Monetary Affairs (ECON), ahead of the Monetary Dialogue with ECB President on 7 February 2022.