A Conceptual Framework for Central Bank Communication

Abstract

In this chapter I want to move towards a workable definition of communicative interaction between the central bank and financial markets. This chapter deals with a comprehensive view of communication. Communication is not a linear transformation of information, hence not a linear transformation of a given meaning from a sender to a receiver. The release of information by a central bank implies the creation of non-linear communication structures. I want to propose a nonlinear conceptual framework for central banking and communicative interactions. Since communication is based on interaction between at least two persons or institutions, this interaction contains different modes of perceiving, and processing of, information and, also, understanding. The conceptual framework introduces communication as a procedure of information processing, interactions among people and institutions in different contexts. It excludes the view that communication is based on coded language or mechanical adaptations as described by the standard model of communication.¹

A game, a language, a rule, is an institution.

Wittgenstein 1983, 334