It has also been said that Norman – somewhat of a character – enjoyed the secrecy and the mystery that the role of a central banker enabled him to have. He often adopted a false identity when travelling. Central bankers preferred to operate in secret back then. Like a sphinx, many central bankers like to be mysterious and inscrutable.
But when it comes to communication, a lot has changed since then. Central banks' most powerful tool today is still their ability to set interest rates, but communication has come very high on the agenda. Today we see open-mouth operations conducted by the Federal Reserve and other central banks and they are using forward guidance as an effective tool.