Central banks that communicate frequently or have more members on their monetary policy committees risk conveying a “cacophony” of messages and causing macroeconomic forecast errors, a paper published by the Swiss National Bank finds.

Does Central Bank Transparency and Communication Affect Financial and Macroeconomic Forecasts? by Thomas Lustenberger and Enzo Rossi researches the effects communication has on policy transmission.

The authors rely for their analysis on a large sample of