We cannot muzzle the public discourse to impose conformity with the needs of nervous markets. At the same time, undisciplined and irresponsible communication has real, costs. Maybe one way forward would be to emphasise that markets should listen to the right kind of statements. If it concerns the euro area as a whole, it is the voices of the supranational level that should count.
Markets should also concentrate on what is actually being said by policy-makers, rather than how this is being interpreted by analysts, commentators and the media. The constant extrapolation of what current policy decisions “could” or “are likely” to imply under extreme scenarios sows the seeds of volatility.