2  For an overview of the way central banks have been providing more information about their monetary policy making, see for example Geraats (2014). For a survey of empirical evidence on the effects of communication, see Blinder et al. (2008). 3  A body of empirical evidence supports the view that high transparency and good communication reinforce policy effectiveness and market efficiency.
See, for example, Levin, Natalucci, and Piger (2004); Gürkaynak, Levin, and Swanson (2006); and Castelnuovo, Nicoletti-Altimari, and Rodriguez Palenzuela (2003). 2  BIS central bankers’ speeches  monetary policy strategy helps markets and the public understand how the central bank is likely to respond to economic and monetary developments – its so-called “reaction function”.