2023-09-04 23:06:48
The President of the European Central Bank (ECB), Christine Lagardehas influenced this Monday at a conference in London on the importance of policy makers are clear and “effective” in talking not only about inflationbut also on the weather or geopolitical tensionssince his words shape the expectations of citizens on these issues.
Lagarde has aimed at “changes in the media landscape”, such as new technologies or ‘fake news’, which are obstacles to transmitting truthful information to public opinion. As an example, he mentioned a study that states that lies spread on the X social network, formerly Twitter, ten times faster than proven facts.
Also, among the main challenges are the “constant competition for attention” y the “global fall in confidence [en las instituciones]”.
In this sense, Lagarde has affirmed that it is key to make it known that inflation is “high” and that the ECB is committed to returning it to the 2% objective in the medium term to avoid the emergence of a “self-fulfilling inflationary dynamics”since in this way the expectations of the consumers remain “anchored”.
Especially when 60% of families assured at the beginning of the year in a survey carried out by the ECB that they pay more attention to inflation data than they did in the past.
“To transmit our monetary policy messages to the general public is essential for the legitimacy of independent central banks in democratic societies and for the effectiveness of monetary policy”, he summarized.
Thus, the president of the ECB has assured that it is essential to be clear, especially in a world more prone to price shocks because it is subject to “substantial volatility” and instability.
language changes
However, Lagarde has indicated, when inflation was at low levels, only the experts and the markets paid attention to the ECB, so it could use technical and complex language that ended up becoming their “comfort zone”.
As circumstances have changed, the body has modified its language to ‘democratize’ it in an exercise in ‘humility’. An example of this is the introductory chapter and summary of its reports, which, on the other hand, are available in all the official languages of the European Union.
On your side, in order to be “transparent” y not “exhaust trust”the possible errors committed when preparing forecasts are motivated.
Explain clearly how inflation affects daily life, why it is necessary to control it and why the measures adopted increase the credibility of the ECB before public opinion “about 10%”, has held.
In addition, Lagarde believes that this new communication increases the presence of the ECB both in traditional media and on social networks and better reaches the public.
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