Lagarde stressed the importance of being clear on inflation to “fix” expectations

President of the European Central Bank (ECB), christine lagardeat the conference held in London this Monday, Policy makers only inflationalso about weather or geopolitical tensionsBecause his words shape the expectations of citizens on these issues.

Lagarde’s goal “Changes in the media environment”Situations that hinder the transmission of real information to the public, such as new technologies or ‘fake news’. As an example, he cited a study that found that lies spread ten times faster than proven truth on social network X (formerly Twitter).

Also among the main challenges “constant competition for attention” And “The global decline in confidence [en las instituciones]”.

In this sense, Lagarde confirmed that it is important to know that inflation is “high” and that the European Central Bank is determined to return inflation to its 2 percent target in the medium term. “self-fulfilling inflation dynamics”because in this way the expectations of consumers remain “fixed”.

Especially when, in a survey conducted by the European Central Bank at the beginning of the year, 60 percent of families declared that they paid more attention to inflation data than in the past.

“To forward Our monetary policy messages to the public are very important “For the legitimacy of independent central banks and the effectiveness of monetary policy in democratic societies.”

That’s why the ECB chief reassured that clarity is vital, as it is subject to “significant volatility” and instability, especially in a world more prone to price shocks.

language changes

However, Lagarde noted that only experts and markets show interest in the ECB when inflation is low, so the ECB can do it. they use technical and complex language that eventually become “comfort zones”.

As circumstances changed, the institution changed its language to ‘democratize’ itself through the exercise of ‘humility’. An example of this, on the other hand, is the introduction and summary of the reports of the European Union, which are available in all official languages.

to be with you “transparent” And not “consuming trust”Possible mistakes made while preparing forecasts are motivated.

Explain clearly how inflation affects daily life, why it needs to be brought under control and why the measures taken increase the credibility of the ECB in the eyes of the public. “about 10%”, kept it.

In addition, Lagarde believes this new communication increases the ECB’s presence in both traditional media and social networks and better reaches the public.

Source: Informacion


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