We also report regularly to the European Parliament. Moreover, we have recognised that, in a market economy, transparency and communication are central to the effectiveness of our monetary policy. 3 First, having a clear objective supports credibility and helps anchor inflation expectations. Second, adopting an explicit  1  See Brunner (1981), Cook and Hahn (1989) and Goodfriend (1986).
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.