Communication And Decision-Making By Central Bank Committees: Different Strategies, Same Effectiveness?
- Topics:
- Decision making
- Tags:
- Bank,
- Communication Strategy,
- Decision-making,
- ECB,
- European Central Bank,
- Federal Reserve Board,
- Management,
- Strategy,
- Tools & Techniques
- Source:
- European Central Bank
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Overview: The paper assesses the communication strategies of the Federal Reserve, the Bank of England and the European Central Bank and their effectiveness. It was found that the effectiveness of communication is not independent from the decision-making process in the committee. The paper shows that the Federal Reserve has been pursuing a rather individualistic communication strategy amid a collegial approach to decision-making, while the Bank of England is using a collegial communication strategy and highly individualistic decision-making. The ECB has chosen a collegial approach both in its communication and in its decision-making. Assessing these strategies, it was found that predictability of policy decisions and the responsiveness of financial markets to communication are equally good for the Federal Reserve and the ECB.
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Format: PDF | Size: 589KB | Date: May 2005 | Pages: 56
