But this has brought its own challenges of how to communicate and how much to communicate, and, as this conference has highlighted, practices differ around the world. More recently, the issue of accountability has been accentuated with the explicit addition of financial stability to central bank mandates in many countries, including South Africa.
Macroprudential policies require more coordination with other agencies, and these policies have strong distributional effects, more so than monetary policy. This requires even more effective communication to gain societal legitimacy. Nothing can undermine independence more quickly than being opaque and unaccountable.