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The field of central banking has come a long way since former Bank of England governor Montagu Norman uttered his dictum: “Never explain, never excuse”. Now, central banks must explain most of their decisions and are rightly held accountable to society. Not only this, but the recognition that expectations play a key role in policy means communication is a tool central banks must use adroitly if they are to meet their mandates. The consequences of mistakes can be severe.
The past year has been
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