I will argue today that transparency and communication are a function of the decision-making process and particular institutional features, which in effect means that no single approach can be regarded as ‘best practice’. In looking at issues such as transparency and communication, the point must also be made that communication is a two-way street.
Making monetary policy also involves giving attention to signals coming from the market. Indeed, the argument is sometimes made that the central bank should simply follow the market, raising the question of who takes the lead. 2.