Just consider, for example, the dividing line between the media and market players on the one side and central bankers on the other. Bridging divides is a core function of communication in monetary policy. The question often arises: Why is this communication so difficult? Many people think that the asymmetric distribution of information is to blame. I do not share this opinion.
In my view that information is distributed quite symmetrically between markets and central banks. I see a kind of time inconsistency as being the deeper-rooted reason for major challenges in monetary policy communication. The forward-looking approach of market players and the media is inevitably focused on meetings, the precise outcome of which is usually not yet known even by the monetary policy decision-makers themselves.