, Columnist
In the Coronavirus Era, 'We Don't Know' Is Defensible
Central bankers should be able to admit they don’t have all the answers. Candor should become the new benchmark for communication.
Questions?
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Central bankers from Sydney to Washington are confessing they don't know how big the economic dent from the coronavirus will be. This is more encouraging than you might think.
In the post-Great Recession era of forward guidance, quarterly forecasts and inflation targets, investors demanded clarity and have grown used to getting it. It’s understandably jarring to hear senior officials say they are taking things day-by-day or changing tack abruptly.