Leonardo Melosi (@leonardo-melosi.bsky.social)

My new VoxEU column cepr.org/voxeu/column... is out. We investigate central banks' communication when monetary policy is set by a committee. Plural voices strengthen communication; unless they clash!

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Communicating monetary policy by a committee: Echoes that move markets Central banks rarely speak with one voice. At the Federal Reserve, for instance, each official brings a distinct perspective, and markets parse every speech for hints of where policy is headed. Different views may help make better decisions, but do they also help when explaining those decisions to the public? And what happens when voices diverge? This column shows that alignment in communication matters: speeches that echo the preceding Chair’s post-FOMC press conference reinforce monetary transmission, while dissonant voices create noise that weakens it. https://cepr.org/voxeu/columns/communicating-monetary-policy-committee-echoes-move-markets