But “explaining” the complexity of the financial system to the general public – and even to informed observers – is challenging. Given that other policy areas such as consumer protection or fiscal policy face similar challenges, developing narratives in cooperation and learning from experience can be fruitful. Developing narratives acknowledges the importance of communication strategies.
A recent report by the Committee on the Global Financial System (CGFS) stresses the importance of communication strategies and gives examples (CGFS 2016). Narratives are not only important in terms of explaining what financial stability policies are about. They can also influence the stability of financial system in their own right.