Communication is an important governance tool for monetary policy makers.
While economic agents short term decisions do tend to be guided by concrete
monetary policy measures, the more relevant long term expectations
can only be steered indirectly through communication. According to the
neoclassical paradigm, effective communication rests on two premises. First,
to be credible, central banks have to match deeds to words (symmetry).
Second, the direction of communication is marked by strict linearity due to
the superior informational endowment of the sender central bank vis-à-vis
the receiver...