RBI website has a superb interviewof RBI Governor Dr Subbarao. The interview was done by Central Banking Publications, London. He points to how he has used his experience of real economy to understand the impact of the crisis and make the necessary moves. He also wishes to make three changes:
Archive for July 13th, 2009
Central banks are upping the scale as far as communications and transparency is concerned. They are opening up a lot more to the public and telling them the crucial role Central Banks play in the economy. And above all, they are trying to pass the message that they are there for the welfare of the public and not really a fancy institution involved in economics gobbledygook.
I pointed to number of measures being taken by Riksbank (see this, this). RBNZ has always been my favorite for its simplicity, ECB, Fed etc have been taking number of measures to explain its moves etc etc.
In a Bank of England Press Release I came across another novel method:
Charlie Bean – Deputy Governor for Monetary Policy and a member of the Monetary Policy Committee – is undertaking a seven-day tour of Britain, starting on 13 July, to continue the Bank’s programme of explaining the MPC’s policy of injecting money directly into the economy alongside its decisions on interest rates. The Deputy Governor will visit some 14 towns and cities across different parts of England, Scotland and Wales. He will meet business groups and organisations and undertake media interviews.
The tour is part of an ongoing effort by the Bank to explain the MPC’s policy. This has included media interviews, speeches, publications, public and parliamentary appearances and information on the Bank’s website. The tour supplements the regular programme of visits undertaken by MPC members to all parts of the United Kingdom, facilitated by the Bank’s Agencies.
So it is a continued practice by BoE members to explain MPC etc. But to explain QE which is a highly sophisticated part of monetary economics to the public is quite a initiative. BoE has also released a primer on QE for the event.
Excellent work. The crisis should not just be noted by the exceptional measures taken by central banks to ease monetary conditions but also because of the exceptional measures taken by central banks to communicate in a transparent manner.