Hi. This is Carl Tannenbaum, Chief Economist for Northern Trust. When I was growing up, my parents told me that silence is golden, which I think was a nice way of them telling me that I talk too much. But an increasing number of observers would offer that same advice to central banks around the world.
Now, it may sound strange, because during my career investors had been craving information from central banks because they have economic insights that the market finds valuable and certainly because they control interest rates, which are a very important economic variable. We want to know what they're thinking. But historically, central banks have preferred to be mysterious. They're more studious and academic. And they like to reflect in a way that is a counterbalance to the daily fluctuations of the financial markets and that sets them apart.
But monetary policy during the course of the last 30 years has become much more public and much more important. And with it demands explanation and information from central bankers has been rising. And central bankers have embraced this because they see the value in not confusing markets and occasionally offering guidance that aids them in their mission. Today, we are treated to a whole host of statements after meetings and minutes of the meetings, forecasts, press conferences, speeches, and we even see central bankers out on the business news networks talking up what they see going on in the world.
So what started as a trickle has turned into a flood. And now may be confusing us more than enlightening us. Once again, central banks around the world are doing studies on the best way to communicate with us and they may conclude, like my parents did, that less is more. And that's The View From Here.