Too Much Central Bank Talk Means ‘Confusion Not Clarity’

The Swiss National Bank’s shock policy U-turn in 2015 has gone down in the annals of history for roiling markets. Now two of the institution’s economists have, in effect, backed its approach to communications.

Thomas Lustenberger and Enzo Rossi argue that increased central bank communication over the years has “created confusion rather than clarity” and hasn’t helped investors and academics improve their macroeconomic forecasts.