Second, central banks need to be strategic in their approach to communications. By communicating in a timely and effective way, we can engage the markets and the public in the issues we face. At the same time, public input helps make monetary policy more effective. And finally, there will continue to be numerous day-to-day challenges in communicating monetary policy.
I would argue that, quite to the contrary, the rules applied by the Paris Club are clear, transparent and well-tailored to address different country groupings. In particular, while the Club’s classic terms are standard treatment, the Houston terms, the Naples terms and the Cologne terms are applied respectively to highly-indebted lower-middle-income countries, highly-indebted poor countries, and countries eligible for the HIPC initiative.