Words, however, do matter if those words help ensure that the appropriate policy actions will be taken and strengthen the public's confidence that the central bank will continue to act in a manner consistent with its long-run objectives.
As I have argued here, the increase in transparency and accountability, which results from clear communication about inflation objectives and about how monetary policy will be conducted to achieve these objectives, creates stronger incentives for central banks to avoid the pursuit of short-run overly expansionary policies.