In financial markets fraught with asymmetric information, the wealth of information held by the central bank is frequently of great benefit in mitigating this issue and thus preventing panic and herding by investors. In this regard, the credibility of the central bank is crucial.
Moreover, where there is no narrative, the vacuum is quickly lled, not necessarily with accurate facts. So another question that we should consider is whether our communications is keeping up with the pace of rapidly changing narratives? Do we spend enough time considering the narrative into which our communication is being placed, or indeed the narrative we want to create?