Second, studies have focussed on the impact of central bank communications on the key information intermediaries – Markets (M), Economists (E) and News (N) – rather than the general public. Empirical studies of central banks have been dominated by MEN. This is a notable gap. It is the general public who, ultimately, make decisions about spending and saving in the economy. And it is the public who decide, ultimately, whether central banks are serving society well or poorly. 38  Third, when it comes to assessing the impact of central bank actions on the trust and understanding of the public, little if any attention has been paid to some of the richer informational channels through which news 36  See Bholat et al (2015) for a summary of these methods. Ongoing work by Hansen, McMahon and Tong uses these techniques to analyse the Bank’s Inflation Report and finds that its text moves financial markets, even after controlling for the Report’s quantitative aspects. This suggests that the narrative explaining what drove the forecasts and how the committee interprets the data matters, not just the numerical forecasts. 38 For example, Blinder et al (2008) suggest that “Virtually all the research to date has focused on central bank communication with the financial markets.
MAS has played a critical role in Singapore’s economic development – keeping inflation low, managing Singapore’s official foreign reserves, preserving financial stability, and promoting Singapore’s development as an international financial centre. What MAS has achieved reflects the strategic vision of its past leaders – its Chairmen and Managing Directors – and deep professionalism of generations of MAS officers. They worked hard, to keep our exchange rate strong, our reserves healthy, and our financial sector safe yet dynamic. MAS was fortunate in the outstanding leaders it has had. This evening, we are honoured to have one of them, PM Lee address us. PM has a long history with MAS. This is the third time he is speaking at a MAS anniversary; he spoke to us when we were 30 years old, then 40 years, and now when we’re 50. And of course, PM was Chairman of MAS from 1998 to 2004, when he spearheaded a series of bold reforms to liberalise the financial sector. But MAS could not have done it alone – even with its exceptional staff and outstanding leaders. 1/3  BIS central bankers' speeches  MAS has succeeded because Singapore has succeeded. If Singapore’s public finances were not strong, our monetary policies would not have worked as well. If Singapore did not have a sound legal and enforcement framework, our regulatory policies would not have worked as well.